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Newest first across public DOJ and U.S. Attorney press releases.
10 September 2024
Pharmaceutical Executive Charged with Insider TradingRead the Press Release
BOSTON – An executive of a global pharmaceutical company was charged today in federal in court in Boston with allegedly earning more than $250,000 by trading on material non-public information.
Dishant Gupta, 55, of Hillsborough, N.J., was charged with one count of securities fraud. He will appear in federal court in Boston at a later date.
According to the charging documents, Gupta worked as the Director of Strategy and Operations in the Boston office of a global pharmaceutical company (Company A). In the spring of 2022, during the course of his employment at Company A, Gupta allegedly obtained material non-public information about the fact that Company A was negotiating to acquire certain assets of a smaller pharmaceutical company based in Boston (Company B), including its leading cancer drug, and that Company A later agreed to acquire Company B outright.
While in possession of this material non-public information, and in violation of his fiduciary duties to Company A, Gupta allegedly acquired shares of Company B in his own and his wife’s brokerage accounts – in an effort to profit from the eventual public announcement of the transaction. Gupta allegedly purchased more than 300,000 shares of Company B across several different brokerage accounts over approximately two and a half months. It is further alleged that Gupta then sold all the shares he had acquired after Company A announced the acquisition of Company B.
Gupta allegedly earned more than $250,000 trading in securities of Company B while in possession of material non-public information.
The charge of securities fraud provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $5 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
The Securities and Exchange Commission filed a civil complaint against Gupta alleging violations of the securities laws.
Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigations, Boston Division made the announcement. Assistant U.S. Attorney Benjamin A. Saltzman of the Securities, Financial & Cyber Fraud Unit is prosecuting the case.The details contained in the charging document are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Owner of Telemarketing Call Center Business Pleads Guilty to Multi-Year Scheme to Defraud PAC DonorsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that RICHARD ZEITLIN, the owner of a telemarketing call center business, pled guilty today to conspiracy to commit wire fraud in connection with his participation in a scheme to use his call centers to defraud donors of certain political action committees (“PACs”) through false and misleading statements. ZEITLIN pled guilty before U.S. District Judge Lewis A. Kaplan.
U.S. Attorney Damian Williams said: “Richard Zeitlin used his telemarketing business to deceive donors into believing they were contributing to charitable causes when, in reality, their money was diverted to political action committees. Zeitlin’s fraudulent actions not only undermined the trust of donors but also exploited their goodwill for personal gain. Today’s announcement highlights this Office’s dedication to holding accountable those who misuse charitable and political organizations to defraud and mislead the public.”
According to the allegations in the Indictment, court filings, and statements made in Court:
PACs are entities registered with the Federal Election Commission that may be tax-exempt and collect money to advocate on behalf of or against certain causes and political candidates. By contrast, charities, unlike PACs, typically provide direct services to communities or causes.
From at least in or about 2017 up to and including in or about 2020, ZEITLIN used his telemarketing call center business and various associated entities to defraud numerous donors by providing misleading and false information about how the donors’ money would be spent and the nature of the organizations to which they were giving. Specifically, ZEITLIN directed his employees to alter the call scripts used when calling potential donors on behalf of certain PACs in order to mislead potential donors into believing that they would be giving to a direct-services organization (i.e., a charity), rather than to a political advocacy organization (i.e., a PAC). ZEITLIN directed that these lies, misleading statements, and misrepresentations be made so that donors would be more likely to give money, thereby increasing the funds raised and profits for his businesses – which typically received approximately 90% of the funds donated. In some instances, Zeitlin’s businesses retained 100% of the funds donated with none of the money going to the causes described in telemarketing calls to donors. When one PAC treasurer confronted ZEITLIN with complaints from donors that solicitation calls falsely represented a PAC as a charity, ZEITLIN falsely denied that the calls were being made, acknowledged that such calls would be inappropriate, and refused to give the treasurer any call recordings that would have revealed his fraud. In or about May 2022, after learning that ZEITLIN and his businesses were under federal investigation, ZEITLIN directed his employees to delete electronic messages relating to his businesses.
If you believe you are a victim of fraud perpetrated by ZEITLIN, please contact [email protected] or the Federal Bureau of Investigation (“FBI”) at 1-800-CALL-FBI or tips.fbi.gov, and find more information here: https://www.justice.gov/usao-sdny/united-states-v-richard-zeitlin.
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ZEITLIN, 54, of Las Vegas, Nevada, pled guilty to one count of conspiracy to commit wire fraud in connection with telemarketing, which carries a maximum sentence of 25 years in prison.
The maximum potential sentence is prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. ZEITLIN is scheduled to be sentenced by Judge Kaplan on December 10, 2024.
Mr. Williams praised the outstanding investigative work of the FBI.
This case is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Jane Kim, Emily Deininger, and Rebecca T. Dell are in charge of the prosecution.
Ocala Man Arrested for Attempted Enticement of A MinorRead the Press Release
Ocala, Florida – United States Attorney Roger B. Handberg announces the arrest of Christopher Shaun Jonas (32, Ocala) on an indictment charging him with attempted enticement of a minor. If convicted, Jonas faces a minimum mandatory sentence of 10 years, up to life, in federal prison. The indictment was returned on August 6, 2024.
According to court records, on July 23, 2024, Jonas contacted a profile on an internet application designed for prostitution. This profile, however, was operated by a Marion County Sheriff’s Office (MCSO) undercover detective. The undercover detective told Jonas that she was a 13-year-old girl and Jonas described in graphic detail the sexual acts that he wanted the girl to perform on him. Jonas subsequently agreed to pick up the child for the sexual encounter at a location in Marion County. When Jonas arrived, however, law enforcement arrested him. Investigators found the cellphone Jonas had used to communicate with the undercover detective inside his vehicle.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case is being investigated by Homeland Security Investigations and the Marion County Sheriff’s Office. It case is being prosecuted by Hannah Nowalk.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
North Providence Man Pleads Guilty to Child Pornography ChargesRead the Press Release
PROVIDENCE, RI – A North Providence man is scheduled to be sentenced in December after admitting to a federal judge that he possessed and distributed child pornography, announced United States Attorney Zachary A. Cunha.
Mark Peterson, 46, pleaded guilty on September 6, 2024 to an indictment charging him with distribution of child pornography and possession of child pornography. He is scheduled to be sentenced on December 10, 2024. The defendant’s conviction carries a mandatory minimum sentence of five years, but his final sentence will be determined by a federal district court judge after consideration of the U.S. Sentencing Guidelines and other statutory factors.
According to information presented to the court, in February 2022, the National Center for Missing and Exploited Children forwarded information to the Rhode Island State Police Internet Crimes Against Children (ICAC) Task Force that an online application was being used to distribute child pornography. A State Police Detective determined that the online account contained 114 files depicting child sexual abuse, and that an IP address at Peterson’s residence was used to access the account.
On April 5, 2022, members of the ICAC Task Force executed a court-authorized search of Peterson’s residence and seized three cellphones. A fourth cellphone stored inside Peterson’s vehicle was also turned over to investigators. A forensic audit of the devices revealed more than 1,300 files comprising videos and images of child sexual abuse, including the depictions of the abuse of pre-pubescent children, infants, sadomasochism, and bestiality. Additionally, located on one cell phone were numerous sexualized screen recordings of prepubescent minor children from social media applications. Investigators also located screen recordings in which Peterson falsely portrayed himself as 15 years old.
The case is being prosecuted by Assistant U.S. Attorneys John P. McAdams and Julianne Klein.
The matter was investigated by the Rhode Island State Police Internet Crimes Against Children (ICAC) Task Force, with the assistance of Homeland Security Investigations and the Massachusetts State Police.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc
The Rhode Island ICAC Task Force is comprised of members of the Rhode Island State Police Computer Crimes Unit along with detectives from the Warwick Police Department, Cranston Police Department, East Providence Police Department, Pawtucket Police Department, Portsmouth Police Department, Bristol Police Department, Middletown Police Department, and Special Agents from Homeland Security Investigations.
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North Carolina Auto Parts Seller and its Owner to Pay $10M for Making, Selling and Installing Emissions Defeat Devices on Motor VehiclesRead the Press Release
WASHINGTON - North Carolina automotive parts manufacturer and seller, Rudy’s Performance Parts Inc. (Rudy’s), and its owner, Aaron Rudolf, have agreed to pay a total of $10 million in criminal fines and civil penalties for manufacturing, selling and installing devices, commonly known as “defeat devices,” used to remove or disable required emissions controls in motor vehicles.
Rudy’s pleaded guilty and was sentenced today in federal court in Washington, D.C., for conspiring to violate the Clean Air Act. U.S. District Court Judge Trevor N. McFadden for the District of Columbia ordered Rudy’s to pay a criminal fine of $2.4 million and to complete a three-year period of organizational probation, consistent with a plea agreement. Rudolf, sole owner and chief executive officer of Rudy’s, previously pleaded guilty for conspiring to violate the Clean Air Act by tampering with monitoring devices on approximately 300 diesel trucks, which involved the installation of defeat devices on those trucks. He was sentenced in April to three years of probation and ordered to pay a $600,000 criminal fine.
Separate from the criminal actions, the Justice Department, on behalf of the Environmental Protection Agency (EPA), filed a civil suit in 2022 against Rudy’s and Rudolf for violating the Clean Air Act by manufacturing, selling and installing defeat devices and failing to adequately respond to the EPA’s formal requests for information. Under a consent decree filed July 29, 2024, Rudy’s and Rudolf will pay a $7 million civil penalty for those violations. The consent decree would also prohibit them from making, selling, offering to sell and installing defeat devices, transferring intellectual property that would allow others to make or sell defeat devices and investing in or profiting from defeat devices manufactured or sold by other businesses. The decree is subject to court approval.
“Defeat devices, such as those sold by Rudy’s, can lead to pollution at high levels that pose health risks and harm the environment,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “This plea agreement and civil settlement show that we will take strong action to enforce the Clean Air Act and emissions controls requirements for motor vehicles.”
“For too many years, companies like Rudy’s have installed Illegal defeat devices to evade the public health protections of the Clean Air Act, to the detriment of communities across America,” said Assistant Administrator David M. Uhlmann of EPA’s Office of Enforcement and Compliance Assurance. “Today’s announcement demonstrates that EPA will vigorously pursue criminal and civil penalties until this blatant illegal behavior comes to an end.”
“Those selling defeat devices are willing to pollute the environment so that they can personally profit,” said U.S. Attorney Matthew M. Graves for the District of Columbia. “Today’s sentencing makes clear that there will be significant consequences for those who traffic in these devices. Anyone considering peddling or installing these devices is on notice of the substantial costs of doing so.”
“The Clean Air Act’s protections are essential for the health and safety of our communities,” said U.S. Attorney Sandra J. Hairston for the Middle District of North Carolina. “Tampering with emissions controls adds excess pollutants to the air we breathe and harms both public health and the environment. Settlements like these are essential to hold entities who violate the Clean Air Act accountable and to prevent harmful air pollution.”
According to court documents in the criminal case, Rudy’s sold defeat devices, known as delete tuners, which tampered with the on-board diagnostic systems (OBDs) of vehicles. Rudy’s top selling product was the Mini Maxx delete tuner originally manufactured by another company, identified in court documents as “Company A.” Rudy’s also sold the XRT Pro, another Company A delete tuner. After Company A stopped making these tuners, Rudy’s conspired with others to manufacture imitation Company A tuners. Rudy’s reached an agreement with a software technician to convert certain tuners into imitation Company A tuners. That agreement ran from July 2015 through December 2016, when the software technician stopped converting tuners.
After that, Rudy’s manufactured the imitation delete tuners in-house using a laptop computer that Rudy’s purchased for $850,000. The laptop contained software to convert tuners into imitation Company A tuners. In-house manufacturing lasted from about December 2016 through July 2018. In total, Rudy’s sold approximately 43,900 imitation tuners, generating about $33 million in revenue.
The civil lawsuit alleges that from at least 2014 through mid-2019, Rudy’s and Rudolf manufactured and sold over 250,000 products designed to remove or disable EPA-mandated emissions controls. These products included hardware parts such as plates that block a vehicle’s exhaust gas recirculation system and pipes that replace pollution treatment components in a vehicle’s exhaust system.
Disabling or removing emissions controls and tampering with the OBD of a diesel truck causes its emissions — including nitrogen oxides, carbon monoxide, particulate matter and non-methane hydrocarbons — to increase significantly. Diesel exhaust is a mobile source air toxic because it poses cancer and noncancer health risks. In the civil complaint, the EPA estimates that the number of products sold by Rudy’s amounted to adding about 1 million vehicles’ worth of pollution to America’s roads.
The $7 million that Rudy’s and Rudolf will pay pursuant to the consent decree was based on their financial capability.
The EPA’s Criminal Investigation Division investigated the criminal case.
Senior Counsel Krishna S. Dighe and Trial Attorney Stephen J. Foster of the Environment and Natural Resources Division’s (ENRD) Environmental Crimes Section and Assistant U.S. Attorney Jennifer L. Blackwell for the District of Columbia are prosecuting the criminal case. Senior Counsel Elizabeth L. Loeb of ENRD’s Environmental Enforcement Section, Assistant U.S. Attorneys Cassie Crawford and Rebecca Mayer for the Middle District of North Carolina and Attorney-Adviser Lauren Tozzi of EPA’s Air Enforcement Division are handling the civil case.
The consent decree was lodged in the U.S. District Court for the Middle District of North Carolina. It is subject to a 30-day public comment period and approval by the Court. A copy of the consent decree and information on submitting comments is available on the Justice Department’s website at www.justice.gov/enrd/consent-decrees.
Stopping the manufacture, sale, and installation of illegal delete devices is a priority for the EPA. You can learn more about the EPA’s criminal enforcement actions on defeat devices here and here.
North Carolina Auto Parts Seller and Its Owner to Pay $10M for Making, Selling and Installing Emissions Defeat Devices on Motor VehiclesRead the Press Release
North Carolina automotive parts manufacturer and seller, Rudy’s Performance Parts Inc. (Rudy’s), and its owner, Aaron Rudolf, have agreed to pay a total of $10 million in criminal fines and civil penalties for manufacturing, selling and installing devices, commonly known as “defeat devices,” used to remove or disable required emissions controls in motor vehicles.
Rudy’s pleaded guilty and was sentenced today in federal court in Washington, D.C., for conspiring to violate the Clean Air Act. U.S. District Court Judge Trevor N. McFadden for the District of Columbia ordered Rudy’s to pay a criminal fine of $2.4 million and to complete a three-year period of organizational probation, consistent with a plea agreement. Rudolf, sole owner and chief executive officer of Rudy’s, previously pleaded guilty for conspiring to violate the Clean Air Act by tampering with monitoring devices on approximately 300 diesel trucks, which involved the installation of defeat devices on those trucks. He was sentenced in April to three years of probation and ordered to pay a $600,000 criminal fine.
Separate from the criminal actions, the Justice Department, on behalf of the Environmental Protection Agency (EPA), filed a civil suit in 2022 against Rudy’s and Rudolf for violating the Clean Air Act by manufacturing, selling and installing defeat devices and failing to adequately respond to the EPA’s formal requests for information. Under a consent decree filed July 29, Rudy’s and Rudolf will pay a $7 million civil penalty for those violations. The consent decree would also prohibit them from making, selling, offering to sell and installing defeat devices, transferring intellectual property that would allow others to make or sell defeat devices and investing in or profiting from defeat devices manufactured or sold by other businesses. The decree is subject to court approval.
“Defeat devices, such as those sold by Rudy’s, can lead to pollution at high levels that pose health risks and harm the environment,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “This plea agreement and civil settlement show that we will take strong action to enforce the Clean Air Act and emissions controls requirements for motor vehicles.”
“For too many years, companies like Rudy’s have installed illegal defeat devices to evade the public health protections of the Clean Air Act, to the detriment of communities across America,” said Assistant Administrator David M. Uhlmann of EPA’s Office of Enforcement and Compliance Assurance. “Today’s announcement demonstrates that EPA will vigorously pursue criminal and civil penalties until this blatant illegal behavior comes to an end.”
“Those selling defeat devices are willing to pollute the environment so that they can personally profit,” said U.S. Attorney Matthew M. Graves for the District of Columbia. “Today’s sentencing makes clear that there will be significant consequences for those who traffic in these devices. Anyone considering peddling or installing these devices is on notice of the substantial costs of doing so.”
“The Clean Air Act’s protections are essential for the health and safety of our communities,” said U.S. Attorney Sandra J. Hairston for the Middle District of North Carolina. “Tampering with emissions controls adds excess pollutants to the air we breathe and harms both public health and the environment. Settlements like these are essential to hold entities who violate the Clean Air Act accountable and to prevent harmful air pollution.”
According to court documents in the criminal case, Rudy’s sold defeat devices, known as delete tuners, which tampered with the on-board diagnostic systems (OBDs) of vehicles. Rudy’s top selling product was the Mini Maxx delete tuner originally manufactured by another company, identified in court documents as “Company A.” Rudy’s also sold the XRT Pro, another Company A delete tuner. After Company A stopped making these tuners, Rudy’s conspired with others to manufacture imitation Company A tuners. Rudy’s reached an agreement with a software technician to convert certain tuners into imitation Company A tuners. That agreement ran from July 2015 through December 2016, when the software technician stopped converting tuners.
After that, Rudy’s manufactured the imitation delete tuners in-house using a laptop computer that Rudy’s purchased for $850,000. The laptop contained software to convert tuners into imitation Company A tuners. In-house manufacturing lasted from about December 2016 through July 2018. In total, Rudy’s sold approximately 43,900 imitation tuners, generating about $33 million in revenue.
The civil lawsuit alleges that from at least 2014 through mid-2019, Rudy’s and Rudolf manufactured and sold over 250,000 products designed to remove or disable EPA-mandated emissions controls. These products included hardware parts such as plates that block a vehicle’s exhaust gas recirculation system and pipes that replace pollution treatment components in a vehicle’s exhaust system.
Disabling or removing emissions controls and tampering with the OBD of a diesel truck causes its emissions — including nitrogen oxides, carbon monoxide, particulate matter and non-methane hydrocarbons — to increase significantly. Diesel exhaust is a mobile source air toxic because it poses cancer and noncancer health risks. In the civil complaint, the EPA estimates that the number of products sold by Rudy’s amounted to adding over 1 million vehicles’ worth of pollution to America’s roads.
The $7 million that Rudy’s and Rudolf will pay pursuant to the consent decree was based on their financial capability.
The EPA’s Criminal Investigation Division investigated the criminal case.
Senior Counsel Krishna S. Dighe and Trial Attorney Stephen J. Foster of the Environment and Natural Resources Division’s (ENRD) Environmental Crimes Section and Assistant U.S. Attorney Jennifer L. Blackwell for the District of Columbia are prosecuting the criminal case. Senior Counsel Elizabeth L. Loeb of ENRD’s Environmental Enforcement Section, Assistant U.S. Attorneys Cassie Crawford and Rebecca Mayer for the Middle District of North Carolina and Attorney-Adviser Lauren Tozzi of EPA’s Air Enforcement Division are handling the civil case.
The consent decree was lodged in the U.S. District Court for the Middle District of North Carolina. It is subject to a 30-day public comment period and approval by the Court. A copy of the consent decree and information on submitting comments is available on the Justice Department’s website at www.justice.gov/enrd/consent-decrees.
Stopping the manufacture, sale, and installation of illegal delete devices is a priority for the EPA. You can learn more about the EPA’s criminal enforcement actions on defeat devices here and here.
North Carolina Auto Parts Seller and Its Owner to Pay $10M for Making, Selling and Installing Emissions Defeat Devices on Motor VehiclesRead the Press Release
WASHINGTON — North Carolina automotive parts manufacturer and seller, Rudy’s Performance Parts Inc. (Rudy’s), and its owner, Aaron Rudolf, have agreed to pay a total of $10 million in criminal fines and civil penalties for manufacturing, selling and installing devices, commonly known as “defeat devices,” used to remove or disable required emissions controls in motor vehicles.
Rudy’s pleaded guilty and was sentenced today in federal court in Washington, D.C., for conspiring to violate the Clean Air Act. U.S. District Court Judge Trevor N. McFadden for the District of Columbia ordered Rudy’s to pay a criminal fine of $2.4 million and to complete a three-year period of organizational probation, consistent with a plea agreement. Rudolf, sole owner and chief executive officer of Rudy’s, previously pleaded guilty for conspiring to violate the Clean Air Act by tampering with monitoring devices on approximately 300 diesel trucks, which involved the installation of defeat devices on those trucks. He was sentenced in April to three years of probation and ordered to pay a $600,000 criminal fine.
Separate from the criminal actions, the Justice Department, on behalf of the Environmental Protection Agency (EPA), filed a civil suit in 2022 against Rudy’s and Rudolf for violating the Clean Air Act by manufacturing, selling and installing defeat devices and failing to adequately respond to the EPA’s formal requests for information. Under a consent decree filed July 29, Rudy’s and Rudolf will pay a $7 million civil penalty for those violations. The consent decree would also prohibit them from making, selling, offering to sell and installing defeat devices, transferring intellectual property that would allow others to make or sell defeat devices and investing in or profiting from defeat devices manufactured or sold by other businesses. The decree is subject to court approval.
“Defeat devices, such as those sold by Rudy’s, can lead to pollution at high levels that pose health risks and harm the environment,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “This plea agreement and civil settlement show that we will take strong action to enforce the Clean Air Act and emissions controls requirements for motor vehicles.”
“For too many years, companies like Rudy’s have installed illegal defeat devices to evade the public health protections of the Clean Air Act, to the detriment of communities across America,” said Assistant Administrator David M. Uhlmann of EPA’s Office of Enforcement and Compliance Assurance. “Today’s announcement demonstrates that EPA will vigorously pursue criminal and civil penalties until this blatant illegal behavior comes to an end.”
“Those selling defeat devices are willing to pollute the environment so that they can personally profit,” said U.S. Attorney Matthew M. Graves for the District of Columbia. “Today’s sentencing makes clear that there will be significant consequences for those who traffic in these devices. Anyone considering peddling or installing these devices is on notice of the substantial costs of doing so.”
“The Clean Air Act’s protections are essential for the health and safety of our communities,” said U.S. Attorney Sandra J. Hairston for the Middle District of North Carolina. “Tampering with emissions controls adds excess pollutants to the air we breathe and harms both public health and the environment. Settlements like these are essential to hold entities who violate the Clean Air Act accountable and to prevent harmful air pollution.”
According to court documents in the criminal case, Rudy’s sold defeat devices, known as delete tuners, which tampered with the on-board diagnostic systems (OBDs) of vehicles. Rudy’s top selling product was the Mini Maxx delete tuner originally manufactured by another company, identified in court documents as “Company A.” Rudy’s also sold the XRT Pro, another Company A delete tuner. After Company A stopped making these tuners, Rudy’s conspired with others to manufacture imitation Company A tuners. Rudy’s reached an agreement with a software technician to convert certain tuners into imitation Company A tuners. That agreement ran from July 2015 through December 2016, when the software technician stopped converting tuners.
After that, Rudy’s manufactured the imitation delete tuners in-house using a laptop computer that Rudy’s purchased for $850,000. The laptop contained software to convert tuners into imitation Company A tuners. In-house manufacturing lasted from about December 2016 through July 2018. In total, Rudy’s sold approximately 43,900 imitation tuners, generating about $33 million in revenue.
The civil lawsuit alleges that from at least 2014 through mid-2019, Rudy’s and Rudolf manufactured and sold over 250,000 products designed to remove or disable EPA-mandated emissions controls. These products included hardware parts such as plates that block a vehicle’s exhaust gas recirculation system and pipes that replace pollution treatment components in a vehicle’s exhaust system.
Disabling or removing emissions controls and tampering with the OBD of a diesel truck causes its emissions — including nitrogen oxides, carbon monoxide, particulate matter and non-methane hydrocarbons — to increase significantly. Diesel exhaust is a mobile source air toxic because it poses cancer and noncancer health risks. In the civil complaint, the EPA estimates that the number of products sold by Rudy’s amounted to adding over 1 million vehicles’ worth of pollution to America’s roads.
The $7 million that Rudy’s and Rudolf will pay pursuant to the consent decree was based on their financial capability.
The EPA’s Criminal Investigation Division investigated the criminal case.
Senior Counsel Krishna S. Dighe and Trial Attorney Stephen J. Foster of the Environment and Natural Resources Division’s (ENRD) Environmental Crimes Section and Assistant U.S. Attorney Jennifer L. Blackwell for the District of Columbia are prosecuting the criminal case. Senior Counsel Elizabeth L. Loeb of ENRD’s Environmental Enforcement Section, Assistant U.S. Attorneys Cassie Crawford and Rebecca Mayer for the Middle District of North Carolina and Attorney-Adviser Lauren Tozzi of EPA’s Air Enforcement Division are handling the civil case.
The consent decree was lodged in the U.S. District Court for the Middle District of North Carolina. It is subject to a 30-day public comment period and approval by the Court. A copy of the consent decree and information on submitting comments is available on the Justice Department’s website at www.justice.gov/enrd/consent-decrees.
Stopping the manufacture, sale, and installation of illegal delete devices is a priority for the EPA. You can learn more about the EPA’s criminal enforcement actions on defeat devices here and here.
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New Hampshire Man Sentenced for Harassing and Intimidating JournalistsRead the Press Release
BOSTON – A New Hampshire man was sentenced yesterday in federal court in Boston for his role in a conspiracy to harass and intimidate journalists employed by New Hampshire Public Radio (NHPR) and their family members.
Michael Waselchuck, 36, of Seabrook, N.H., was sentenced by U.S. District Court Judge Indira Talwani to 21 months in prison and three years of supervised release. In April 2024, Waselchuck pleaded guilty to conspiracy to commit stalking through interstate travel and using a facility of interstate commerce. Waselchuck was arrested and charged by criminal complaint in June 2023. He was later indicted along with co-defendants Eric Labarge, Tucker Cockerline and Keenan Saniatan.
In March 2022 an NHPR journalist (Victim 1) published an article detailing allegations of sexual and other misconduct by a former New Hampshire businessperson, identified in the charging document as Subject 1. Another NHPR journalist (Victim 2) also contributed to the article, which appeared on NHPR’s website during and after March 2022. In response to this reporting, Labarge – who is a close personal associate of Subject 1 – Cockerline, Waselchuck and Saniatan agreed to harass and intimidate Victims 1 and 2 and their immediate family members.
On or about May 18, 2022, Labarge solicited Cockerline to vandalize Victim 1’s parents’ home in Hampstead, N.H., and Victim 1’s home in Melrose, Mass., using bricks and red spray paint. Cockerline, in turn, recruited Waselchuck to vandalize Victim 1’s residence.
On the evening of May 20, 2022, Cockerline spray painted the word “C*NT” in large red letters on one of the garage doors of Victim 1’s parents’ home, and left a brick on the ground near the front door. Several hours later, Waselchuck threw a brick through an exterior window of Victim 1’s home and painted the phrase “JUST THE BEGINNING” in large red letters on the front of the house.
Labarge and Saniatan have pleaded guilty and are awaiting sentencing. In August 2024, Cockerline was sentenced to 27 months in prison and three years of supervised release.
Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Valuable assistance was provided by the Concord, Hampstead and Hanover, New Hampshire Police Departments, the Melrose, Massachusetts Police Department and the United States Attorney’s Office for the District of New Hampshire. Assistant U.S. Attorneys Jason A. Casey and Torey B. Cummings of the Criminal Division are prosecuting the case.
New Canaan to Make Significant Changes to Town Facilities to Comply with the ADARead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, today announced that the U.S. Attorney’s Office has reached a settlement agreement with the Town of New Canaan to resolve allegations that some of the town’s facilities did not comply with the Americans with Disabilities Act (“ADA”).
The settlement agreement resolves a complaint filed by an individual alleging that some of New Canaan’s parks and sports facilities as well as parts of the Town Hall campus were inaccessible to individuals with mobility disabilities.
Under federal law, municipalities must ensure that their programs, services, and activities are accessible to individuals with mobility disabilities. When municipalities alter or build new facilities, they must also make them accessible to persons with disabilities in accordance with the ADA Standards for Accessible Design.
New Canaan is in the process of making the significant improvements required by the settlement agreement at Waveny Park, New Canaan High School, Mead Park, and the Town Hall. Some changes required by the settlement include adding accessible seating, parking, and routes to several sports fields and athletic facilities at New Canaan High School and Mead Park, and making numerous changes to the interior and exterior of Waveny House to make it more accessible, including adding an elevator. The town will also create an accessible route from Vine Cottage to the Town Hall.
U.S. Attorney Avery commended the leadership of the Town of New Canaan for cooperating with the U.S. Attorney’s Office to resolve the investigation. “Individuals with disabilities should have equal access to their local park and be able to cheer on their children at a local high school game without worrying about inaccessible facilities,” said U.S. Attorney Avery. “I am pleased that New Canaan has made this commitment to making its facilities more accessible to individuals with disabilities.”
Any member of the public who wishes to file a complaint alleging that a public entity or place of public accommodation in Connecticut is not accessible to persons with disabilities may contact the Civil Rights Intake Specialist at the U.S. Attorney’s Office at 203-696-3000.
Additional information about the ADA can be found at www.ada.gov, or by calling the Justice Department’s toll-free information line at (800) 514-0301 and (833) 610-1264 (TTY). More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt.
This matter was handled by Assistant U.S. Attorney Stewart C. Dearing in coordination with the Disability Rights Section of the U.S. Department of Justice Civil Rights Division.
New Bedford Man Sentenced for Social Security FraudRead the Press Release
BOSTON – A New Bedford man was sentenced today in federal court in Boston for fraudulently receiving Social Security disability benefits.
Anthony Patterson, 62, was sentenced by U.S. District Court Judge Allison D. Burroughs to time served (one day) and three years of supervised release, with six months to be served in home confinement. Patterson was also ordered to pay restitution of $92,582 to the Social Security Administration (SSA). In June 2024, Patterson pleaded guilty to one count of theft of government money. Patterson was charged in May 2024.
From 2013 to 2023, Patterson collected Supplemental Security Income (SSI) benefits, which are only available to people with limited financial means. During two interviews with SSA in 2012 and 2022, Patterson made sworn false statements regarding his marital status and living situation to conceal household income and resources. As a result, he collected $92,582 in SSI benefits that he was ineligible to receive.
In addition, Patterson failed to report work and income to SSA from his business breeding and selling show bulldogs for $3,000 to $7,000 each, which also would have exceeded the resource limits for SSI.
Patterson also told SSA in 2007 that he could not lift more than 20 pounds because of restrictions from his doctor, but then participated in weightlifting competitions where he lifted over 400 pounds without informing SSA that his medical condition had improved as required for Social Security disability programs.
Acting United States Attorney Joshua S. Levy and Corwin Rattler, Acting Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division made the announcement today. Special Assistant U.S. Attorney James J. Nagelberg of the Major Crimes Unit prosecuted the case.
Muskogee Resident Pleads Guilty to Aggravated Sexual Abuse in Indian CountryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Jonathan Gage Wiedel, age 19, of Muskogee, Oklahoma, entered a guilty plea to a Superseding Indictment of 12 counts of Aggravated Sexual Abuse of a Minor in Indian Country.
The Superseding Indictment alleged that Wiedel sexually abused four children under the age of 12 while he was employed as a teacher’s assistant at St. Joseph Catholic School in Muskogee, Oklahoma. The crimes occurred in Muskogee County, within the boundaries of the Muscogee Creek Nation Reservation, in the Eastern District of Oklahoma.
The charges arose from an investigation by the Federal Bureau of Investigation and the Muskogee County Sheriff’s Office.
The Honorable D. Edward Snow, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma accepted the plea and ordered the completion of a presentence investigation report. Wiedel will remain in the custody of the United States Marshal Service pending sentencing.
Assistant United States Attorney Jessie K. Pippin represented the United States.
Mullins Man Sentenced to Nearly 10 Years in Federal Prison for Distributing Crack CocaineRead the Press Release
FLORENCE, S.C. — Mark McGarret Lewis, 52, of Mullins, was sentenced to nearly 10 years in federal prison after pleading guilty to five counts of distribution of crack cocaine.
Evidence presented to the court showed that on five separate occasions in April 2019, Lewis distributed a quantity of crack cocaine to a confidential informant. Lewis committed the offense after having two prior federal convictions, one for bank fraud and one for possession with intent to distribute five grams or more of crack cocaine, as well as two other state drug convictions for conspiracy to distribute crack cocaine and distribution of crack cocaine.
United States District Judge Sherri A. Lydon sentenced Lewis to 110 months' imprisonment, to be followed by a six-year term of court-ordered supervision. There is no parole in the federal system.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Marion County Combined Drug Unit, and the Mullins Police Department. Assistant U.S. Attorney Lauren Hummel is prosecuting the case.
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Missouri Man Sentenced to 3 Years in Federal Prison for Fraud and Tax OffensesRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that LYELL CHAMPAGNE, JR., 24, of St. Louis, Missouri, was sentenced today by U.S. District Judge Sarala V. Nagala in Hartford to 36 months of imprisonment, followed by three years of supervised release, for offenses stemming from two separate fraud schemes.
According to court documents and statements made in court, between approximately March 2021 and April 2022, Champagne conspired with Kristian Gupta to obtain online bank account credentials from potential victims, and then transfer money from victims’ bank accounts to cryptocurrency accounts controlled by Champagne and Gupta. As part of the scheme, Gupta provided Champagne with personal identifying information of victims, and Champagne used that information to open email accounts and accounts at a cryptocurrency exchange. Champagne and Gupta attempted to recruit bank “insiders” to participate in their scheme, but were disrupted by an undercover law enforcement investigation and failed to transfer any funds from compromised accounts.
In a second scheme, Champagne filed wholly fictitious tax returns for “Shireberk International,” which had no actual business operations, for the 2018 through 2021 tax years. The returns resulted in a refund of $3,449,935.
Judge Nagala ordered Champagne to pay restitution of $111,738.52. The remaining funds were recovered by law enforcement.
On June 11, 2024, Champagne pleaded guilty to one count of conspiracy to commit bank fraud and one count of filing false claims with the IRS. He has been detained since October 2022 when his bond was revoked.
On April 19, 2024, Gupta, of Port Charlotte, Florida, pleaded guilty to conspiracy to commit bank fraud. He is scheduled to be sentenced on September 19, 2024.
This matter has been investigated by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Edward Chang.
Missouri Man Sentenced to 15 Years for Possessing Child PornographyRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Ryan A. Campbell, 46, Levasy, Missouri, formerly of Amery, Wisconsin, was sentenced today by Chief U.S. District Judge James D. Peterson to 15 years in federal prison for possessing child pornography. This term of imprisonment will be followed by 20 years of supervised release. Campbell pleaded guilty to this charge on March 28, 2024.
In September 2022, the National Center for Missing & Exploited Children received a tip that Campbell was uploading child pornography. Law enforcement agents later searched a phone seized from Campbell and found child pornography, including images that Campbell himself produced.
At sentencing, Judge Peterson questioned whether Campbell understood the seriousness of his actions and was concerned Campbell was deflecting blame for his actions on others. Judge Peterson determined that the 20-year period of supervised release was warranted because the defendant did not seem to accept responsibility for his actions and because he had an impulse toward sexual activity with children.
The charge against Campbell was the result of an investigation conducted by the Wisconsin Department of Justice, Division of Criminal Investigation, the Eau Claire County Sheriff’s Office, and the Federal Bureau of Investigation. Assistant U.S. Attorney Elizabeth Altman prosecuted this case.
This investigation was a part of Project Safe Childhood, a nationwide initiative to combat child sexual exploitation and abuse. Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Missouri Man Admits Producing Child PornographyRead the Press Release
CAPE GIRARDEAU – A man from the unincorporated community of Patterson, in Wayne County, Missouri on Tuesday admitted producing images and videos containing child sexual abuse material for years.
Kevin D. Carroll, 59, pleaded guilty in U.S. District Court in Cape Girardeau to one count of sexual exploitation of a minor. He admitted producing child sexual abuse material by taking pictures and videos of a child starting when the victim was 8 years old. Carroll said he took pictures and videos for about four years. An investigation began when deputies with the Wayne County Sheriff’s Department were called to Carroll’s home for a domestic dispute and seized electronic devices containing the child sexual abuse material.
As part of the plea, both sides will recommend 25 years in prison at Carroll’s sentencing, which is scheduled for December 11.
The FBI and the Wayne County Sheriff’s Department investigated the case. Assistant U.S. Attorney Julie Hunter is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department of Justice Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Michigan Men Admit Smash-and-Grab at St. Louis County Jewelry StoreRead the Press Release
ST. LOUIS – Two men from the Detroit, Michigan area have admitted stealing hundreds of thousands of dollars’ worth of watches from a jewelry store in Ellisville, Missouri.
Kordaryl Cross, 25, pleaded guilty in U.S. District Court in St. Louis Tuesday to conspiracy to commit interstate transportation of stolen property. Dajuan Marcellus, 34, pleaded guilty to the same charge July 29.
Both men admitted hatching a plan to use a stolen vehicle to travel to the Ellisville store to steal Rolex watches. On Jan. 2, 2023, Marcellus bought a prepaid Visa gift card that Cross used eight days later to purchase sledgehammers at a Missouri retailer. Marcellus, Cross and at least two others stole a Dodge Ram truck from Brentwood that they then drove to Ellisville. Marcellus and one other person entered the store and used sledgehammers to smash glass cases containing the watches while Cross monitored the time. They then drove to a parking garage and abandoned the stolen truck. Cross and Marcellus took the watches to Illinois.
Marcellus is scheduled to be sentenced October 29 and Cross on December 9. The charge carries a maximum penalty of 5 years in prison, a $250,000 fine or both prison and a fine.
The Ellisville Police Department investigated the case. Assistant U.S. Attorney Gwendolyn Carroll is prosecuting the case.
Mexican National Trafficking Counterfeit Fentanyl Pills Sentenced to 12 YearsRead the Press Release
NEW BERN, N.C. – Christian Ricardo Arce-Cazares, a 36-year-old resident of Las Vegas, Nevada, illegally present in the United States has been sentenced to 150 months in prison, followed by five years of supervised release for conspiracy to possess with intent to distribute and aiding and abetting the distribution of methamphetamine and fentanyl in the Nash County area. Arce-Cazares pled guilty on November 8, 2022.
“Drug traffickers make a mistake when they cross North Carolina state lines,” said U.S. Attorney Michael Easley. “This trio brought thousands of fentanyl pills to Rocky Mount, tried to flee from deputies, and ditched their ride in a Battleboro field. International traffickers should take note of this dozen year prison sentence. Nash County is a great place for business, but not your business.”
According to the court documents and other information presented in court, in May of 2021 the Drug Enforcement Administration (DEA) received information from a confidential source that a large shipment of narcotics was to be delivered to the Eastern District of North Carolina organized by a Mexican drug trafficker. On June 10, 2021, an undercover officer spoke to the courier and coordinated a meeting at a gas station in Nashville, North Carolina. At that meeting DEA learned that the defendant was the driver of a black vehicle with Nevada license plates. In addition, law enforcement learned that the defendant was accompanied by two additional individuals who were driving a second car with the narcotics hidden inside that vehicle. During the meeting, the defendant stated that the drugs were in a hidden compartment, that they needed a place to remove the drugs, and that they wanted to count the money prior to the exchange.
A second meeting was held at a Walmart store in the Rocky Mount area after which law enforcement attempted to conduct a traffic stop of the second vehicle, a gray SUV. The gray SUV initially stopped. The driver was identified as co-defendant, Yvoanny Osmeo Barrientos-Ochoa. Shortly after exiting the SUV, co-defendant Barrientos returned to the SUV and fled. Law enforcement initiated a pursuit but lost sight of the vehicle, which was later located unoccupied in a field in Battleboro, North Carolina.
With the assistance of a K-9, law enforcement ultimately located 7,718 grams of crystal methamphetamine inside the vehicle and in a wooded area next to the grey SUV. A search of the vehicle also yielded 5,000 counterfeit fentanyl pills which weighed 438.10 grams. Thereafter, law enforcement located all three individuals hiding in a hotel and arrested all three individuals.
The defendant was found to be responsible for possession with intent to distribute 438.10 gram of fentanyl and 7,718 grams of crystal methamphetamine.
“Nash County Sheriff's Office is grateful for the strong relationships we have with our federal partners,” said Nash County Sheriff Keith Stone. “This case proves how our partnerships effectively remove dangerous criminals from harming our communities. Teamwork is the only way we will make a difference combating gangs, guns, and drugs in Nash County. I appreciate the hard work and dedication that the Nash County Sheriff's Office and our partners demonstrate every day.”
The prosecution of Arce-Cazares and Barrientos-Ochoa was a part of Organized Crime and Drug Enforcement Task Force Operation (OCDETF). OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launders, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina, made the announcement after sentencing by Judge Louise W. Flanagan. The Drug Enforcement Administration, Department of Homeland Security, and the Nash County Sheriff’s Office investigated the case and Assistant U.S. Attorney Jennifer C. Nucci prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for case number 5:22-cr-00175-FL.
Menan Man Sentenced for Trafficking FentanylRead the Press Release
POCATELLO – William Brian Thomson, 37, of Menan, was sentenced to 70 months in federal prison for possession with intent to distribute fentanyl, U.S. Attorney Josh Hurwit announced today.
According to court records, Bonneville County Sheriff’s deputies stopped a vehicle that was driven by Thomson. He fled on foot and was apprehended by law enforcement a short distance away. During a search of the vehicle, law enforcement discovered approximately 1,739 blue pills that later tested positive for fentanyl, a quarter pound of methamphetamine, and other drugs.
A federal grand jury returned an indictment for possession with intent to distribute fentanyl in July of 2023. Thomson entered a guilty plea on April 24, 2024. Senior U.S. District Judge B. Lynn Winmill also ordered Thomson to serve three years of federal supervised release following his prison sentence.
U.S. Attorney Hurwit commended the work of Bonneville County Sheriff's Office, which led to the charges. Assistant U.S. Attorney, formerly the Eastern Idaho Partnership Special Assistant U.S. Attorney, Blythe McLane prosecuted the case.
This case was handled by the U.S. Attorney Office’s specially deputized Special Assistant U.S. Attorney (SAUSA), funded by the Eastern Idaho Partnership (EIP) and the State of Idaho. The EIP is a coalition of local city and county officials in eastern Idaho as well as the Idaho Department of Correction.
The EIP SAUSA program allows law enforcement to utilize the federal criminal justice system – through the EIP SAUSA – to prosecute, convict, and sentence violent, armed criminals and drug traffickers. These criminals often receive stiffer penalties than they might in state courts.
This program was created in January 2016. Since that time, approximately 224 defendants have been indicted by the EIP SAUSA. Of these defendants, 145 have been indicted on drug trafficking charges. The defendants indicted under the program have been sentenced to 10,477 months (approximately 873 years) in federal prison, representing an average prison sentence of 46.77 months (3.89 years). Defendants indicted for drug trafficking offenses serve, on average, approximately 72.25 months (6.02 years) in federal prison.
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Mayor Brown Proposes Creating New Special Assistant United States Attorney Position to Focus on Narcotics Prosecution in City of SpokaneRead the Press Release
Spokane, Washington - A proposal put forward by Mayor Lisa Brown would combine federal and city resources to establish a Special U.S. Assistant Attorney to focus on narcotics prosecution impacting the City of Spokane.
If approved by the City Council, this attorney will be a city employee who works in collaboration with the Eastern District of Washington U.S. Attorney’s Office. The U.S. Attorney’s Office will provide office space, training, day-to-day supervision, and will assist with recruitment, interviewing and identifying successful candidates.
Developing this role in partnership with the U.S. Attorney’s Office ensures that the City will have close relationships with federal agencies like the Drug Enforcement Administration and the Bureau of Alcohol, Tobacco, Firearms and Explosives, and have enhanced penalty provisions for high-level drug dealers and traffickers.
“Our community has been deeply affected by the opioid epidemic. To address this crisis, I am looking to partner a new special attorney to target the root of the problem – drug dealing and trafficking. By focusing upstream, we aim to cut off the supply before it reaches out most vulnerable, preventing more people from falling victim and giving our community a chance to heal,” Mayor Brown said. “I am grateful to U.S. Attorney Vanessa Waldref and her team for their partnership in this effort. Together, we will create better outcomes for our community.”
“The City of Spokane and the U.S. Attorney’s Office share the same goal - a safer, stronger community for all who call Spokane home. The dramatic increase in the use of fentanyl in the last few years has destroyed countless lives,” stated U.S. Attorney Vanessa R. Waldref, who serves as the chief federal law enforcement officer for the Eastern District of Washington. U.S. Attorney Waldref continued, “We stand prepared to work with our federal and local law enforcement partners to address the damage being done to our communities. Working together, we are better equipped to address the fentanyl crisis — bringing justice to purveyors of poison in our neighborhoods and sparing community members and families from the tragedy of deadly drug poisonings. I am grateful for our partnership with the City of Spokane, and I look forward to continuing to work with the Mayor’s team on critical public safety projects for our community.”
About the City of Spokane
The City of Spokane, home to more than 229,000 people, is located in the heart of the Inland Northwest. Our 2,000 employees strive to deliver efficient and effective services that facilitate economic opportunity and enhance the quality of life for all our residents. For more information, visit www.spokanecity.org and follow us @spokanecity on Facebook, Twitter and Instagram.
About the U.S. Attorney’s Office
The United States Attorney's Office is responsible for representing the federal government in almost all litigation involving the United States in the Eastern District of Washington, which is comprised of the 20 Washington counties east of the Cascade Mountains. The U.S. Attorney’s Office handles all criminal prosecutions for violations of federal law, as well as civil lawsuits by and against the U.S. government. It is the mission and the pledge of the U.S. Attorney’s Office to represent the United States with determination, professionalism, and integrity. The District’s headquarters is located in Spokane, Washington, with branch offices in Richland and Yakima.
Martha's Vineyard Man Pleads Guilty to Armed Bank RobberyRead the Press Release
BOSTON – An Edgartown man pleaded guilty yesterday in federal court in Boston to armed bank robbery and conspiracy offenses.
Miquel Antonio Jones, 33, pleaded guilty to one count of conspiracy to commit armed bank robbery, and one count of armed bank robbery and aiding and abetting. U.S. District Court Judge William G. Young scheduled sentencing for Dec. 2, 2024. In March 2023, Jones was indicted by a federal grand jury, and additional charges were brought in a superseding indictment in April 2023.
Jones met Omar Johnson, Tevin Porter, and allegedly Romane Clayton, in Martha’s Vineyard on Nov. 16, 2022 to plan the robbery. Jones identified the bank they would be robbing and provided the others with dark-colored clothing and plastic masks that resembled an elderly man with exaggerated facial features. On the morning of Nov. 17, 2022, Porter, Jones and Johnson forced their way through the rear door of the Rockland Trust Bank in Tisbury. The men were armed with two semi-automatic handguns and wearing the clothes and masks that Jones had provided. Once inside the bank, one of the individuals held a gun to the head of one of the bank employees, forced the employee to open the bank’s vault, and took approximately $39,100. The bank employees were bound with duct tape and plastic zip ties while their belongings were searched and the robbers demanded access to one of their vehicles.
Jones, Porter and Johnson then left the bank in an employee’s car, allegedly picked up Clayton outside the bank, and drove to the Manuel Correllus State Forest, where they abandoned the vehicle in a parking lot. They then fled in another vehicle that Clayton allegedly had left there for purposes of their escape.
Porter and Clayton allegedly left Martha’s Vineyard together on a ferry later that morning. Meanwhile, Johnson and Jones drove to a local farm associated with Jones’s landscaping job to dispose of the equipment that had been used during the bank robbery. At the farm, they allegedly buried the two firearms used in the robbery in a hole in the ground and burned the remainder of the robbery equipment, including the plastic masks.
After the evidence was disposed of, Jones returned home to his residence where he hid the approximately $39,100 that had been stolen from the bank, in his bedroom under a bureau. Johnson left Martha’s Vineyard, reconvened with Porter, and allegedly Clayton, in Woods Hole and then drove them to the area of Johnson’s home in New Hampshire.
Johnson and Porter have both pleaded guilty and are awaiting sentencing. Clayton is scheduled to plead guilty on Sept. 12, 2024.
The charge of armed bank robbery provides for a sentence of up to 25 years in prison, five years of supervised release and a fine of $250,000. The charge of conspiracy to commit armed bank robbery provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Valuable assistance was provided by Cape & Islands District Attorney’s Office; the Massachusetts State Police; the Tisbury, West Tisbury, Edgartown, Chilmark, Oak Bluffs, Aquinnah, Canterbury (N.H.) and New Haven (Conn.) Police Departments; the United States Postal Inspection Service; the Bureau of Alcohol Tobacco and Firearms; Immigration and Customs Enforcement; and United States Customs and Border Protection. Assistant U.S. Attorney Meghan C. Cleary of the Criminal Division is prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Man sentenced for online activities with a minorRead the Press Release
OXFORD, Miss. – A Byhalia, Mississippi man was sentenced today to more than 15 years in prison for transmitting sexual conduct with a minor over the Internet.
According to court documents, Thomas Taylor, 29, was identified as part of Operation Renewed Hope, an operation run by Homeland Security Investigations to identify victims and perpetrators of known child sexual exploitation videos. Taylor admitted to using a video chat mobile application to communicate on live video with others over the Internet. While on the live video, Taylor masturbated and revealed a minor’s genitals and anus to the audience. A recording was made of the incident which has appeared in other investigations related to trafficking of child sexual abuse materials.
On Tuesday afternoon, U.S. District Judge Sharion Aycock sentenced Taylor to 200 months in prison followed by five years of supervised release.
“Minor victims of sexual abuse and exploitation often face a life-time of far-reaching consequences as a result of the reprehensible acts committed by their perpetrators,” remarked U.S. Attorney Clay Joyner. “This office is committed to holding accountable those individuals who sexually exploit minors and we appreciate the outstanding work by HSI and AUSA King to do just that.”
“These despicable crimes are beyond comprehension,” said HSI New Orleans Special Agent in Charge Eric DeLaune. “This criminal will now be held accountable for his vile crimes.”
The Department of Homeland Security investigated the case.
Assistant U.S. Attorney Parker S. King prosecuted the case as part of the Project Safe Childhood initiative. Project Safe Childhood is a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. The goal of Project Safe Childhood is to reduce the incidence of sexual exploitation of children.
Madera Man Convicted of Firearms Violations 3 Months After Being Convicted in Jan. 6 Capitol Breach Trial in Washington, D.C.Read the Press Release
FRESNO, Calif. — Following a one-day trial in Fresno, Benjamin Martin, 46, of Madera, was convicted today of illegally possessing firearms and ammunition, U.S. Attorney Phillip A. Talbert announced.
According to evidence presented at trial and other court records, in September 2021, the FBI executed a search warrant at Martin’s residence in Madera and arrested him on charges filed by the U.S. Attorney’s Office for the District of Columbia for the breach of the U.S. Capitol that occurred on Jan. 6, 2021. During the search, the FBI found eight guns, including an AR-15 style assault rifle, multiple high-capacity magazines for the AR-15, and more than 500 rounds of ammunition. Martin was prohibited from possessing these items because of his prior domestic violence conviction, and resulting restraining order, for choking his then girlfriend and dragging her back into the house after she tried to flee.
Shortly after his arrest, Martin was caught on a recorded jail call where he instructed his then fiancée to lie to authorities and tell them that the firearms seized from his residence belonged to her and her father and that he did not know about them. She agreed to do so.
Martin also recently went to trial in the Capitol breach case in Washington, D.C., where the evidence showed that he held a door to the Capitol open while officers tried to close it. He kept the door open so that other rioters could spray chemical irritants and throw objects at the officers. Martin was convicted on all counts, which included two felonies for civil disorder and obstructing an official proceeding.
This case is the product of an investigation by the FBI. Assistant U.S. Attorneys Joseph Barton, Robert Veneman-Hughes, and Michael Tierney are prosecuting the case.
Martin is scheduled to be sentenced in the firearms case in Fresno on Nov. 25, 2024, by U.S. District Judge Jennifer L. Thurston. Martin faces up to 15 years in prison and a 250,000 fine for that case. He is scheduled to be sentenced in the Capitol breach case in Washington, D.C., on Nov. 15, 2024, by U.S. District Judge Rudolph Contreras. He faces additional imprisonment and fines in that case. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
The press release for Martin’s conviction in the Capitol breach case can be found here: https://www.justice.gov/usao-dc/pr/california-man-convicted-felony-and-misdemeanor-charges-actions-during-jan-6-capitol
Lexington County Man Sentenced to More than 16 Years in Federal Prison for Drug TraffickingRead the Press Release
COLUMBIA, S.C. — Reginald Travis Pearson, 40, of West Columbia, was sentenced to more than 1o years in federal prison after pleading guilty to distribution of methamphetamine.
Evidence presented to the court showed that between November 2022 and January 2023, Pearson distributed more than 900 grams of methamphetamine and 28 grams of cocaine to undercover agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Additionally, Pearson sold seven firearms, despite being a convicted felon and legally prohibited from possessing firearms.
Pearson's criminal record includes previous convictions for petty larceny, and multiple drug-related offenses, including possession with intent to distribute marijuana, cocaine, and heroin, as well as heroin distribution. Pearson was sentenced as a career offender based on his six prior drug convictions.
United States District Judge Sherri A. Lydon sentenced Pearson to 200 months' imprisonment, to be followed by a five-year term of court-ordered supervision. There is no parole in the federal system.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Homeland Security Investigations (HSI), West Columbia Police Department, Lexington County Sheriff’s Department, and Richland County Sheriff’s Department. Assistant U.S. Attorney Ariyana Gore prosecuted the case.
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Lancaster Woman Pleads Guilty to Defrauding Two Nonprofit Veterans OrganizationsRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Jessika L. Hiepler, 46, of Lancaster, Pennsylvania, entered a plea of guilty today before United States District Judge Jeffrey L. Schmehl to two counts of wire fraud related to her scheme to defraud two nonprofit veterans organizations, American Legion Post 34 and American Veterans Post 19. Hiepler and her associate netted $1.425 million from the fraud scheme.
The defendant was charged with these violations by criminal information on August 12.
For nearly 15 years, Hiepler served as a board member and as the manager, treasurer, and financial officer for American Legion Post 34 (“Legion Post 34”). In 2019, Hiepler offered to “bail out” a separate veterans’ organization, American Veterans Post 19 (“AMVETS Post 19”), that was facing financial difficulties.
Under the pretext of bailing out AMVETS Post 19, Hiepler assumed control over its financial affairs and acquired its valuable four-acre commercial property through theft, deceit, and misrepresentation. First, Hiepler misled AMVETS Post 19 to secure approval for the bailout, including with the false promises of an interest-free loan, minimal rent, and full transparency. Second, Hiepler stole from her then-employer, Legion Post 34, to raise funds for the bailout. Third, once in control of AMVETS Post 19’s finances, Hiepler also stole from AMVETS Post 19 and used its funds for her own benefit. Fourth, Hiepler concealed her self-dealing, manipulated and altered financial records, and destroyed financial and business records at both Legion Post 34 and AMVETS Post 19.
From the outset, the defendant schemed about making money and selling the AMVETS Post 19’s property at 715 Fairview Avenue in Lancaster, PA. In Hiepler’s own words:
- “[W]e will make our money and they [AMVETS Post 19] can kiss our a[**]”
- “I am ready to get rid of these motherf[*****]s. . . . I can’t wait for sh[**] to be ours”
- “I can’t wait to see their face when we hand them their eviction notice”
- “Honestly all I want is my money. That’s it. I could care f[***]ing less about any of them.”
Three years after acquiring the AMVETS Post 19’s property for a below-market rate of $500,000 through the “bailout,” Hiepler’s real estate investment company sold the fraudulently obtained property for $1.95 million, and booked a gain of $1.425 million after expenses.
“Jessika Hiepler’s contempt for her victims, veterans who served this country, is palpable — and despicable,” said U.S. Attorney Romero. “Not only did she defraud these organizations, she did so gleefully, hurling insults and expletives behind the scenes. My office and the FBI will never stop working to hold crooks like this accountable on behalf of fraud victims, both past and potential.”
“In weaving a web of lies and deception, this defendant pocketed over one million dollars intended for organizations dedicated to supporting our nation’s veterans,” said Wayne A. Jacobs, Special Agent in Charge of FBI Philadelphia. “FBI Philadelphia and our law enforcement partners will continue to pursue criminals who prey on the public for their own personal profit.”
Hiepler faces a maximum possible sentence of 40 years in prison, three years of supervised release, and a $500,000 fine, along with restitution. As part of the plea agreement, Hiepler agreed to a forfeiture money judgment in the amount of $1,425,847.24.
The case was investigated by the FBI, with assistance from the Lancaster City Bureau of Police, and is being prosecuted by Assistant United States Attorneys Samuel S. Dalke and Andrew Jenemann.
Kalispell couple admit defrauding Social Security AdministrationRead the Press Release
MISSOULA — A Kalispell couple today admitted to stealing nearly $200,000 from the Social Security Administration by falsely reporting their living and financial situation so they could receive more benefits on behalf of their children than they were entitled, U.S. Attorney Jesse Laslovich said.
The defendants, Mistie Lynn Knapton, 49, and her husband, Travis Ray Knapton, 50, each pleaded guilty to theft of government money in separate hearings. Mistie Knapton pleaded to a felony charge and faces a maximum of 10 years in prison, a $250,000 fine and three yeas of supervised release. Travis Knapton pleaded to a misdemeanor charge and faces a maximum of one year in prison, a $100,000 fine and one year of supervised release.
U.S. District Judge Donald W. Molloy presided. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Sentencing for both defendants was set for Jan. 9, 2025. The defendants were released pending further proceedings.
The government alleged in court documents that the Knaptons received benefits from the Social Security Administration (SSA) on behalf of five of their children through the Supplemental Security Income (SSI) program. The program is meant to provide monthly payments to people with disabilities who have little to no income or resources. The SSI program has income and asset limits, either of which could make a beneficiary ineligible for benefits.
The government further alleged that Mistie was the representative payee for her children enrolled in SSI. In May 2009, Mistie wrote to SSA that Travis no longer lived with her and her children. Mistie frequently reported to SSA that she and the children paid rent for their housing, that Travis was not a member of the household and that their only income was child support Travis paid to Mistie. However, from 2009 to present, Travis owned the houses that Mistie and the children lived in, he frequently lived with them, and he paid for vehicles, food and other living expenses for the family from his income. In addition to the houses, Travis owned several cars, trucks, ATVs, a motorcycle and a jet ski.
In September 2020, SSA conducted a redetermination of benefits for one of the children. The agency determined that Mistie failed to list Travis as a member of the household and told SSA that she paid rent of $1,400 a month. Mistie also confirmed that “no one in the household was a parent or child of either the landlord or his/her spouse.” In truth, Mistie and Travis jointly owned the house, and Travis was part of the household at that time. SSA analyzed the Knapton’s assets and determined that from April 2011 through February 2024, the Knapton children would not have qualified for SSI benefits had SSA known the truth abut the Knapton’s living and financial situation. SSA calculated that the Knapton children received $196,575 in SSI benefits they were not actually eligible to receive. The SSI income was paid into separate bank accounts for each child. Mistie frequently shared and transferred this money, stolen from the United States, into Travis’ bank account. Travis then used the stolen money to purchase homes and vehicles, pay for general living expenses and other items for himself and his family.
The U.S. Attorney’s Office is prosecuting the case. The SSA Office of Inspector General and Montana Division of Criminal Investigation conducted the investigation.
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Jacksonville Woman Pleads Guilty to Credit Scheme and COVID Relief Fraud Involving the Paycheck Protection ProgramRead the Press Release
Jacksonville, Florida – United States Attorney Roger B. Handberg announces that Crystal Denean Harvell (37, Jacksonville) has pleaded guilty to one count of conspiracy to commit wire fraud involving a line of credit scheme and one count of wire fraud involving COVID relief fraud through the Paycheck Protection Program (PPP). Harvell faces up to 20 years in federal prison on each count and payment of restitution to the victims she defrauded and to the United States government. Harvell has also agreed to forfeit $20,415, which is traceable to proceeds of the wire fraud offense involving COVID relief fraud. A sentencing date has not yet been set.
According to court documents, Harvell and her co-conspirators fraudulently obtained the Social Security numbers (SSNs) of others. From February 2016 through September 2019, Harvell and others recruited individuals to obtain lines of credit at various businesses, using the SSNs. After fraudulently obtaining the lines of credit, they obtained jewelry and other merchandise. Harvell resold some of the merchandise and lines of credit on social media platforms.
In April 2021, Harvell submitted a PPP loan application to a lender authorized by the Small Business Administration (SBA) to lend funds for approved PPP loan applications. The PPP loan application falsely claimed that Harvell operated her own business. Throughout the loan application Harvell made multiple false statements regarding her purported gross income and expenses associated with operating her business. In support of her PPP loan application, she submitted a false IRS Form 1040 - Profit or Loss From Business. It contained false statements about operating expenses, gross income, and wage expenditures for her purported business. In truth, Harvell’s business did not exist. In reliance on the false statements in her loan application, her application was approved, and she received a PPP loan totaling $20,415.
After receiving the PPP loan proceeds in her bank account, Harvell began making withdrawals and spending the funds on personal expenses. In October 2021, Harvell submitted a PPP loan forgiveness application to the SBA that included multiple false representations. In the application, she falsely claimed that she spent more than $18,000 on payroll costs and that the PPP loan proceeds were only used for eligible purposes. In reliance on her false statements the SBA forgave the entire loan, plus accrued interest.
This case was investigated by the Jacksonville Sheriff’s Office and the U.S. Secret Service – Jacksonville Field Office. It is being prosecuted by Assistant United States Attorney Kevin C. Frein. The asset forfeiture is being handled by Assistant United States Attorney Jennifer M. Harrington.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department's response to the pandemic, please visit Justice.gov/Coronavirus and Justice.gov/Coronavirus/CombatingFraud.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice's National Center for Disaster Fraud (NCDF) Hotline via the NCDF Web Complaint Form.
Jacksonville Armed Career Criminal Sentenced to 15 Years in Federal PrisonRead the Press Release
Jacksonville, Florida – United States District Judge Marcia Morales Howard has sentenced David Wayne Riddle (30, Jacksonville) to 15 years in federal prison for possessing a firearm as a convicted felon. Riddle entered a guilty plea on May 22, 2024.
According to court documents, on January 8, 2023, Riddle was stopped by officers from the Jacksonville Sherriff’s Office after they had observed Riddle not wearing his seat belt while driving. When the officers encountered Riddle, they smelled marijuana coming from inside the vehicle. A search of the vehicle was conducted, and a loaded Smith and Wesson pistol was recovered from under the front passenger seat. Riddle was interviewed and admitted that he possessed the firearm knowing that he was a convicted felon.
Riddle has multiple prior felony convictions for serious drug related offenses and violent crimes making him prohibited from possessing firearms under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Jacksonville Sheriff’s Office. It was prosecuted by Assistant United States Attorney John Cannizzaro.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Israeli Freight Forwarder Pleads Guilty to Violating Export Restrictions Imposed on RussiaRead the Press Release
MIAMI – Gal Haimovich, 49, of Israel, pleaded guilty yesterday to conspiracy to commit export control and smuggling violations for his role in a scheme to illegally ship aircraft parts and avionics from U.S. manufacturers and suppliers to Russia, including for the benefit of sanctioned Russian airline companies. As part of his plea agreement, Haimovich admitted that his scheme involved deceiving U.S. companies about the true destination of the goods at issue, and that the defendant and others attempted to conceal the scheme by submitting false information in export documents filed with the U.S. government. A sentencing hearing has been set for Nov. 22.
According to court documents, Haimovich owned an international freight forwarding company that was an affiliate in a group of companies that did business in various countries, including the United States and Israel. Haimovich, through those companies, operated as a freight forwarder of choice for individuals and entities seeking to illegally export goods to Russia in violation of U.S. export control laws. Between at least March 2022 and May 2023, Haimovich facilitated the export of aircraft parts and avionics, including those with missile technology applications, from the United States, through the Southern District of Florida, to various third-party transhippers on behalf of Russian customers. These Russian end customers routinely instructed Haimovich to deceive the U.S.-based manufacturers and suppliers about the ultimate destination of the goods.
For example, between April 2022 and April 2023, after the United States imposed additional restrictions on the export of goods to Russia in response to the country’s full-scale invasion of Ukraine, Haimovich arranged for more than 160 shipments to companies in the Maldives and United Arab Emirates that were responsible for the illicit transshipment of the goods to Russia. One such shipment, of an air data module, occurred in August 2022. Haimovich, who had been hired by Siberia Airlines (doing business as S7 Airlines) to deliver the aircraft component to Russia, directed a co-conspirator to falsely inform the U.S. supplier that the part was destined for the Maldives; in fact, Haimovich knew that the part was destined for Russia for the benefit of S7 Airlines.
Haimovich also agreed that, between March 2022 and May 2023, he billed Russian customers, including Siberia Airlines (doing business as S7 Airlines), more than $2 million to have aircraft parts and avionics illegally exported from the United States to Russia. In connection with Haimovich’s plea, he agreed to the entry of a forfeiture money judgment in the sum of $2,024,435 and to forfeit various aircraft parts and components.
The Department of Commerce’s Office of Export Enforcement and the FBI investigated the case.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, Assistant Secretary for Export Enforcement Matthew S. Axelrod of the U.S. Commerce Department and Executive Assistant Director Robert Wells of the FBI National Security Branch made the announcement.
Assistant U.S. Attorney Christopher Browne for the Southern District of Florida and Trial Attorney Christopher M. Rigali of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.
This case is being coordinated through the Justice Department’s Task Force KleptoCapture, an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export controls and economic countermeasures that the United States, along with its foreign allies and partners, has imposed in response to Russia’s unprovoked military invasion of Ukraine. Announced by the Attorney General on March 2, 2022, and under the leadership of the Office of the Deputy Attorney General, the task force will continue to leverage all of the department’s tools and authorities to combat efforts to evade or undermine the collective actions taken by the U.S. government in response to Russian military aggression.
You may find a copy of this press release (and any updates) on the website of the United States Attorney’s Office for the Southern District of Florida at www.justice.gov/usao-sdfl.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case number 24-cr-20374.
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Israeli Freight Forwarder Pleads Guilty to Violating Export Restrictions Imposed on RussiaRead the Press Release
Gal Haimovich, 49, of Israel, pleaded guilty yesterday to conspiracy to commit export control and smuggling violations for his role in a scheme to illegally ship aircraft parts and avionics from U.S. manufacturers and suppliers to Russia, including for the benefit of sanctioned Russian airline companies. As part of his plea agreement, Haimovich admitted that his scheme involved deceiving U.S. companies about the true destination of the goods at issue, and that the defendant and others attempted to conceal the scheme by submitting false information in export documents filed with the U.S. government. A sentencing hearing has been set for Nov. 22.
According to court documents, Haimovich owned an international freight forwarding company that was an affiliate in a group of companies that did business in various countries, including the United States and Israel. Haimovich, through those companies, operated as a freight forwarder of choice for individuals and entities seeking to illegally export goods to Russia in violation of U.S. export control laws. Between at least March 2022 and May 2023, Haimovich facilitated the export of aircraft parts and avionics, including those with missile technology applications, from the United States, through the Southern District of Florida, to various third-party transhippers on behalf of Russian customers. These Russian end customers routinely instructed Haimovich to deceive the U.S.-based manufacturers and suppliers about the ultimate destination of the goods.
For example, between April 2022 and April 2023, after the United States imposed additional restrictions on the export of goods to Russia in response to the country’s full-scale invasion of Ukraine, Haimovich arranged for more than 160 shipments to companies in the Maldives and United Arab Emirates that were responsible for the illicit transshipment of the goods to Russia. One such shipment, of an air data module, occurred in August 2022. Haimovich, who had been hired by Siberia Airlines (doing business as S7 Airlines) to deliver the aircraft component to Russia, directed a co-conspirator to falsely inform the U.S. supplier that the part was destined for the Maldives; in fact, Haimovich knew that the part was destined for Russia for the benefit of S7 Airlines.
Haimovich also agreed that, between March 2022 and May 2023, he billed Russian customers, including Siberia Airlines (doing business as S7 Airlines), more than $2 million to have aircraft parts and avionics illegally exported from the United States to Russia. In connection with Haimovich’s plea, he agreed to the entry of a forfeiture money judgment in the sum of $2,024,435 and to forfeit various aircraft parts and components.
The Department of Commerce’s Office of Export Enforcement and the FBI investigated the case.
Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Executive Assistant Director Robert Wells of the FBI National Security Branch, and Assistant Secretary for Export Enforcement Matthew S. Axelrod of the U.S. Commerce Department made the announcement.
Trial Attorney Christopher M. Rigali of the National Security Division’s Counterintelligence and Export Control Section and Assistant U.S. Attorney Christopher Browne for the Southern District of Florida are prosecuting the case.
This case is being coordinated through the Justice Department’s Task Force KleptoCapture, an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export controls and economic countermeasures that the United States, along with its foreign allies and partners, has imposed in response to Russia’s unprovoked military invasion of Ukraine. Announced by the Attorney General on March 2, 2022, and under the leadership of the Office of the Deputy Attorney General, the task force will continue to leverage all of the department’s tools and authorities to combat efforts to evade or undermine the collective actions taken by the U.S. government in response to Russian military aggression.
India- and New Jersey-Based Jeweler Admits Multimillion-Dollar International Trade Fraud Scheme and Unlicensed Money TransmittingRead the Press Release
NEWARK, NJ. – An India- and New Jersey-based man who operated jewelry companies in New York City’s Diamond District admitted today to spearheading a scheme to illegally evade customs duties for more than $13.5 million of jewelry imports into the United States and with illegally processing more than $10.3 million through an unlicensed money transmitting business, U.S. Attorney Philip R. Sellinger announced.
Monishkumar Kirankumar Doshi Shah, aka “Monish Doshi Shah, 39, of Mumbai, India, and Jersey City, New Jersey, pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to an information charging him with one count each of conspiracy to commit wire fraud and operating and aiding and abetting the operation of an unlicensed money transmitting business.
According to documents filed in this case and statements made in court:
From December 2019 through April 2022, Shah engaged in a scheme to evade duties for shipments of jewelry from Turkey and India to the United States. Shah would ship and/or instruct his conspirators to ship goods from Turkey or India – which would have been subject to an approximately 5.5 percent duty if shipped directly to the United States – to one of Shah’s companies in South Korea. Shah’s conspirators in South Korea would change the labels on the jewelry to state that they were from South Korea instead of Turkey or India, and then ship them to Shah or his customers in the United States, thereby unlawfully evading the duty. Shah would also make and instruct his customers to make fake invoices and packing lists to make it look like Shah’s South Korean companies were actually ordering jewelry from Turkey or India. Shah also instructed a third-party shipping company to provide false information to U.S. Customs and Border Protection (CBP) concerning the origin of the jewelry. During the scheme, Shah shipped approximately $13.5 million of jewelry from South Korea to the United States without paying the appropriate duty.
From July 2020 through November 2021, Shah owned and/or operated numerous jewelry companies in New York City’s Diamond District, including MKore LLC, MKore USA Inc., and Vruman Corp. Shah used these entities to conduct more than $10.3 million in illegal financial transactions for customers, including converting cash to checks or wire transfers. Shah would also collect cash from customers and use other individuals’ jewelry companies to convert the cash into wires or checks. At times, Shah and other members of the money transmitting business moved hundreds of thousands of dollars in a single day. In exchange for their services, Shah or other members of the money transmitting business charged a fee. None of Shah’s or his associates’ companies were registered as money transmitting businesses with New York, New Jersey, or the Financial Crimes Enforcement Network (FinCEN).
As part of his plea agreement, Shah agreed to pay restitution to CBP in the amount of $742,500 for the wire fraud scheme and forfeiture in the amount of $11.13 million for the wire fraud and unlicensed money transmitting schemes.
The wire fraud conspiracy charge is punishable by a maximum of 20 years in prison. The charge of operating and aiding and abetting the operation of an illegal money transmitting business carries a maximum penalty of five years in prison. Each count is also punishable by a maximum fine of either $250,000 or twice the gain or loss from the offense, whichever is greatest. Sentencing is scheduled for Jan. 23, 2025.
U.S. Attorney Sellinger credited special agents and task force officers of IRS – Criminal Investigation, under the direction of Special Agent in Charge Jenifer L. Piovesan in Newark; special agents of Homeland Security Investigations New York, under the direction of Acting Special Agent in Charge Darren B. McCormack; special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge William S. Walker; and special agents with U.S. Customs and Border Protection at the Port of New York/Newark, under the direction of Port Director TenaVel Thomas, with the investigation leading to today’s guilty plea. He also thanked U.S. Customs and Border Protection in New York; Homeland Security Investigations in Seoul, South Korea; the Korea Customs Service in South Korea; the Seoul Customs Special Investigation Office in South Korea; the U.S. Drug Enforcement Administration in Paterson; the Parsippany-Troy Hills Police Department; the Morristown Police Department; the Federal Deposit Insurance Corporation – Office of Inspector General; and the Justice Department’s Money Laundering and Asset Recovery Section (MLARS).
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The government is represented by Assistant U.S. Attorneys Marko Pesce and Olta Bejleri of the Economic Crimes Unit in Newark.
shah.information.pdfFraudster Sentenced for Deceitfully Obtaining Social Security Disability BenefitsRead the Press Release
Salt Lake City, Utah – Calvin Perry, 53, of Sandy, Utah, was sentenced today to 12 months’ home detention, four years’ probation, and ordered by the court to pay $130,901 in restitution after defrauding the Social Security Administration (SSA) for at least six years.
On July 1, 2024, Perry pleaded guilty to theft of government property before a U.S. District Court Judge.
According to court documents and statements made at Perry’s sentencing hearing, beginning by at least March 2017 and continuing until October 2023, Perry stole funds from the United States, specifically benefits from the SSA. Perry was initially granted SSA disability benefits in November 2012 after he claimed he could not work due to a back injury. At that time, and on several later occasions, the SSA reminded Perry of his duty to update the SSA of various changes, including those related to work, income, and improvements in his condition. Yet, in March 2017, Perry began working full time at a lawncare company, earning a monthly salary of $4,400, without notifying SSA. In October and November 2023, SSA agents observed Perry actively engaged in manual labor for this company including, heavy lifting and unloading large equipment while bending and twisting his back.
After SSA received reports of Perry’s work concealment, it gave Perry the opportunity to complete a Continuing Disability Review Report. However, he failed to respond, and SSA suspended Perry’s benefits. In November 2023, Perry visited the South Jordan SSA Field office and filed a Continuing Disability Review Report and a Work Activity Report, claiming that he had not worked since 2011 and still struggled with basic tasks like standing, walking, and getting dressed. However, in December 2023 SSA agents interviewed Perry and his employer, who both admitted that Perry had been working for several years.
In total, Perry received overpayment of $130.901.00 in Social Security benefits. Additionally, according to court documents, Perry is a repeat offender, having a prior state conviction in 2005 for attempting to receive unemployment benefits while he was employed.
The case was investigated jointly by the Social Security Administration (SSA).
Special Assistant United States Attorney Sachi J. Jepson of the U.S. Attorney’s Office for the District of Utah prosecuted the case.
Former Utica Mayor and School Board President Sentenced for Mail Fraud SchemeRead the Press Release
SYRACUSE, NEW YORK – Louis LaPolla, age 79, of Utica, New York, was sentenced today in federal court in Syracuse to 3 years of probation, after previously pleading guilty to mail fraud for soliciting and then stealing donations intended for a scholarship fund in his late wife’s name. United States Attorney Carla B. Freedman and Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), announced the guilty plea.
In pleading guilty previously, LaPolla admitted that he set up a scholarship fund in honor of his late wife, Andrea LaPolla, after she passed away in 2018, with the stated intention of benefitting Utica City School District students who planned to pursue post-secondary education in health-related fields. LaPolla further admitted that he received nearly $40,000 in donations intended for the scholarship fund from individuals and businesses and that he spent nearly all the donated money on himself rather than depositing it into the scholarship fund. LaPolla served as the mayor of Utica from 1984 to 1995, and he served as President of the Utica City School Board from 2018 to 2022, following 21 years of service as a member of the board.
As part of his sentence, LaPolla will pay restitution in the amount of $38,616, and he will separately owe a forfeiture money judgment in the same amount.
Earlier this year, LaPolla pled guilty in Oneida County Court to a misdemeanor petit larceny charge after admitting that he used envelopes, stamps, and mailing labels belonging to the Utica City School District to send out fundraising flyers relating to the scholarship. In that case, LaPolla was sentenced to 60 days of house arrest, 3 years of probation, and ordered to pay $3,100 in restitution.
The FBI investigated this case with assistance from the New York State Police and the Oneida County District Attorney’s Office. Assistant U.S. Attorney Michael F. Perry prosecuted the case.
Former Tuscaloosa-Area Credit Union Insider Pleads Guilty to ConspiracyRead the Press Release
BIRMINGHAM, Ala. – A former credit union employee pleaded guilty for her role in a wide-ranging account-takeover scheme, announced U.S. Attorney Prim F. Escalona and Federal Bureau of Investigation Special Agent in Charge Carlton L. Peeples.
Appearing before U.S. District Judge Madeline Haikala, Brianna Mckala Johnson, 25, of Tuscaloosa, pleaded guilty to one count of conspiracy to commit wire fraud.
According to the plea agreement, Johnson was previously employed by Alabama Credit Union as a Member Care Agent. In this role, Johnson was able to access credit union member account information including, among other things, the names and personal identifying information of accountholders and their account balances. From August 2022 to January 2023, Johnson abused this access, misappropriating customer account information and then providing that account information to the administrator of a Telegram channel called “The Lucky Shop.”
The administrator of “The Lucky Shop” channel sold the information that Johnson provided, including bank logins and digital checks, to customers of his channel. The administrator also worked with others to withdraw funds from certain accounts. This part of the scheme, which the conspirators called “Operation ACU,” included depositing fraudulent checks, submitting fraudulent loan applications, and initiating fraudulent Automated Clearing House transfers. It also included using stolen passcodes to withdraw funds from Automated Teller Machines.
The maximum penalty for conspiracy to commit wire fraud is 5 years in prison and a $250,000 fine. Johnson has agreed to pay at least $406,809.96 in restitution to her former employer as part of her plea agreement.
The FBI investigated the case with assistance from Alabama Credit Union, the Tuscaloosa Police Department, and the Orange Beach Police Department. The U.S. Secret Service, the U.S. Postal Inspection Service, and the U.S. Postal Service Office of Inspector General have assisted in the broader investigation.
Assistant U.S. Attorney Edward J. Canter is prosecuting the case.
Former Rutherfordton ABC Store Manager Pleads Guilty to Wire Fraud and Money Laundering for Embezzling More Than $374,000Read the Press Release
ASHEVILLE, N.C. – Russel Edward Hester, 72, of Rutherfordton, N.C., appeared before U.S. Magistrate Judge W. Carleton Metcalf yesterday and pleaded guilty to federal charges for embezzling $374,807.10 from the Alcohol Beverage Control Board of Rutherfordton, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Donald “Trey” Eakins, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation (IRS-CI), Charlotte Field Office, Tommy D. Coke, Inspector in Charge of the Atlanta Division of the U.S. Postal Inspection Service (USPIS), which oversees Charlotte, and Chief Clint Ingle of the Rutherfordton Police Department, join U.S. Attorney King in making today’s announcement.
According to filed plea documents, from December 2021 to October 2023, Hester embezzled at least $374,807.10 from the Alcohol Beverage Control Board of Rutherfordton (the Board) which manages the ABC Store where Hester worked as a manager for nearly 10 years. As store manager, Hester had access to, and control over, the Board’s financial accounts and records, wrote checks to pay bills, and was responsible for creating the budget each year. Hester was also responsible for providing all information needed for the annual independent third-party audit of the ABC Store.
According to court records, beginning as early as December 19, 2021, Hester used the Board’s debit card to withdraw funds at Two Kings Casino. Continuing until October 22, 2023, Hester used this debit card at the casino 192 times to withdraw funds totaling $374,807.10, and used the money to gamble, primarily playing slot machines. On days where Hester used the Board’s debit card, he won jackpots totaling $1,469,368.31, and deposited the winnings into his personal bank accounts. For example, on July 4, 2023, Hester used the Board’s debit card to withdraw $3,000 at Two Kings Casino. Hester then placed these funds into a slot machine and won a jackpot of $18,350. Hester elected to have this jackpot issued in the form of a check, which he deposited into a bank account under his control.
Plea documents also show that Hester took steps to cover up the embezzlement. For example, during the Board’s 2023 annual independent audit, Hester provided multiple altered and falsified bank statements to the auditor. In furtherance of the fraud, Hester removed transactions from the casino, added fabricated transactions, and falsified bank account balances on the statements before providing them to the auditor.
Hester pleaded guilty to wire fraud and money laundering. He is currently released on bond. At sentencing, Hester faces up to 20 years in prison for the wire fraud charge and 10 years in prison for the money laundering charge. A federal district court judge will determine Hester’s sentence after considering the U.S. Sentencing Guidelines and other statutory factors. A sentencing date has not been set.
In making today’s announcement, U.S. Attorney King commended IRS-CI, USPIS, and the Rutherfordton Police Department for their investigation of the case and thanked the Rutherford County District Attorney’s Office for its invaluable assistance.
Assistant U.S. Attorney Alex M. Scott of the U.S. Attorney’s Office in Asheville is prosecuting the case.
Former Orange County High School Teacher Who Installed Hidden Cameras in School Bathrooms Sentenced to 17½ Years in PrisonRead the Press Release
SANTA ANA, California – A former teacher at a high school in Orange County who secretly installed hidden cameras in bathrooms at the school and elsewhere and, during a three-year span, viewed and downloaded hundreds of images – including of children under the age of 12 – using the restroom, was sentenced today to 210 months in federal prison for possessing child sexual abuse material (CSAM).
Siu Kong Sit, 38, of Rowland Heights, was sentenced by United States District Judge John W. Holcomb, who ordered Sit to be placed on lifetime supervised release following his eventual release from prison and scheduled a restitution hearing for November 8 in this case.
Sit pleaded guilty on March 29 to one count of possession of child pornography.
“This defendant was every parent’s nightmare – rather than care for the safety and well-being of students, he exploited them in the most abhorrent way,” said United States Attorney Martin Estrada. “It is important that we send a strong message of zero tolerance for those who take advantage of children. My office will continue to prosecute offenders who prey on our youth to the fullest extent allowed by law.”
According to Sit’s plea agreement, beginning in at least February 2020, when he was employed as a teacher at Beckman High School in Irvine, Sit began secretly installing hidden cameras in restrooms located on campus. After installing the cameras, Sit regularly reviewed the videos captured by the cameras and downloaded the videos that were of interest to him.
In May 2022, while serving as the high school robotics team coach, Sit placed a hidden camera in the restroom of a hotel room where minor students on the robotics team were staying during a robotics tournament in Texas. From 2020 to 2023, Sit viewed and downloaded hundreds of images of children and adults, in various states of undress, using restrooms.
In February 2023, after the cameras had been discovered, law enforcement seized several digital devices from Sit’s home. Sit owned and was the sole user of all these devices. Officers also seized two external storage drives from the cameras that Sit had secretly installed at Beckman High School.
A forensic review of the various digital devices identified dozens of images and videos of child pornography, including images and videos that Sit had recorded himself of children using restrooms in various states of undress. The victims that Sit recorded without their consent were under the age of 18, and some of the victims were under the age of 12.
A search of a Sit-owned hard drive resulted in the seizure of at least 22 images and one video of CSAM, including several depicting a toddler engaged in sexual activity. The search of a separate Sit-owned hard drive contained at least 150 images and four videos of CSAM.
Sit admitted in his plea agreement to knowingly possessing images and videos of minors under the age of 12 engaging in sexual conduct.
The Orange County District Attorney’s Office is pursuing criminal charges against Sit in Orange County Superior Court concerning the adult victims in the hidden videos matter. The charges filed in state court concerning Sit’s minor victims was dismissed so the federal case could proceed.
Homeland Security Investigations and the Irvine Police Department investigated this matter.
Assistant United States Attorney Melissa S. Rabbani of the Santa Ana Branch Office prosecuted this case.
Former Michigan Police Officer Sentenced for Civil Rights Violation for Violently Assaulting ArresteeRead the Press Release
DETROIT – A former Warren, Michigan, police officer was sentenced today to one year and one day in prison for using excessive force against an arrestee while fingerprinting and photographing him at a local detention facility.
Matthew Rodriguez, 49, pleaded guilty in March to one count of deprivation of rights under color of law. According to court documents, on June 13, 2023, then-officer Rodriguez was fingerprinting and photographing an arrestee, J.S., who had recently been brought to the Warren Police Department’s jail for processing. During fingerprinting, Rodriguez and J.S. got into a verbal argument and began trading insults. In retaliation for one of J.S.’ remarks, Rodriguez struck J.S. multiple times and slammed J.S.’ head against the fingerprint room floor.
In connection with his plea, Rodriguez admitted to writing a report in which he made false statements about the incident and omitted material information in an attempt to cover up his crime.
“This defendant swore to protect and serve his community, but instead he abused his power by violently assaulting an arrestee,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This sentence should serve as a reminder to all law enforcement that a badge is not a license to answer verbal insults with physical violence and excessive force. The Justice Department will continue to protect the constitutional rights of all Americans and to hold law enforcement accountable when they violate federal civil rights law.”
“Police officers have a duty to protect the civil rights of everyone in our community, including individuals in their custody,” said U.S. Attorney Dawn N. Ison for the Eastern District of Michigan. “Physical abuse of detainees is completely unacceptable and undermines public confidence in the integrity of law enforcement. My office is committed to accountability for all public servants who abuse the public trust, and today’s sentence is a powerful reflection of that commitment.”
“When it comes to the public’s trust, law enforcement officers are held to the highest ethical standards,” said Special Agent in Charge Cheyvoryea Gibson of the FBI Detroit Field Office. “The sentencing of former police officer Matthew Rodriguez should serve as a stark reminder that the use of excessive force and deliberate false statements are not only criminal acts but also tarnishes the hard work and dedication of law enforcement officers who serve with integrity every day. This sentencing would not have been possible without the assistance of the Warren Police Department, the U.S. Attorney’s Office of Eastern Michigan and the Justice Department’s Civil Rights Division.”
The FBI Detroit Field Office investigated the case, with assistance from the Warren Police Department’s Internal Affairs Unit.
Assistant U.S. Attorney Robert Moran for the Eastern District of Michigan and Trial Attorney Alec Ward of the Justice Department’s Civil Rights Division prosecuted the case.
Former Michigan Police Officer Sentenced for Civil Rights Violation for Violently Assaulting ArresteeRead the Press Release
A former Warren, Michigan, police officer was sentenced today to one year and one day in prison for using excessive force against an arrestee while fingerprinting and photographing him at a local detention facility.
Matthew Rodriguez, 49, pleaded guilty in March to one count of deprivation of rights under color of law. According to court documents, on June 13, 2023, then-officer Rodriguez was fingerprinting and photographing an arrestee, J.S., who had recently been brought to the Warren Police Department’s jail for processing. During fingerprinting, Rodriguez and J.S. got into a verbal argument and began trading insults. In retaliation for one of J.S.’ remarks, Rodriguez struck J.S. multiple times and slammed J.S.’ head against the fingerprint room floor.
In connection with his plea, Rodriguez admitted to writing a report in which he made false statements about the incident and omitted material information in an attempt to cover up his crime.
“This defendant swore to protect and serve his community, but instead he abused his power by violently assaulting an arrestee,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This sentence should serve as a reminder to all law enforcement that a badge is not a license to answer verbal insults with physical violence and excessive force. The Justice Department will continue to protect the constitutional rights of all Americans and to hold law enforcement accountable when they violate federal civil rights law.”
“Police officers have a duty to protect the civil rights of everyone in our community, including individuals in their custody,” said U.S. Attorney Dawn N. Ison for the Eastern District of Michigan. “Physical abuse of detainees is completely unacceptable and undermines public confidence in the integrity of law enforcement. My office is committed to accountability for all public servants who abuse the public trust, and today’s sentence is a powerful reflection of that commitment.”
“When it comes to the public’s trust, law enforcement officers are held to the highest ethical standards,” said Special Agent in Charge Cheyvoryea Gibson of the FBI Detroit Field Office. “The sentencing of former police officer Matthew Rodriguez should serve as a stark reminder that the use of excessive force and deliberate false statements are not only criminal acts but also tarnishes the hard work and dedication of law enforcement officers who serve with integrity every day. This sentencing would not have been possible without the assistance of the Warren Police Department, the U.S. Attorney’s Office of Eastern Michigan and the Justice Department’s Civil Rights Division.”
The FBI Detroit Field Office investigated the case, with assistance from the Warren Police Department’s Internal Affairs Unit.
Assistant U.S. Attorney Robert Moran for the Eastern District of Michigan and Trial Attorney Alec Ward of the Justice Department’s Civil Rights Division prosecuted the case.
Former Correctional Officer Sentenced to More Than Six Years in Prison Following Federal Drug ConvictionRead the Press Release
MONTGOMERY, ALABAMA – Today, Acting United States Attorney Kevin P. Davidson announced the sentencing of a Montgomery, Alabama man for his role in a conspiracy to bring illegal drugs into a prison. On September 9, 2024, a federal judge sentenced 46-year-old Henry Guice, Jr., a former correctional officer with the Alabama Department of Corrections (ADOC), to 75 months in prison. Federal inmates are not eligible for parole.
According to court records and statements made in open court, on June 20, 2023, an ADOC officer and his canine conducted a sniff search of all vehicles in the parking lot of Staton Correctional Facility in Elmore County. The dog alerted on Guice’s vehicle, who was working inside the facility at the time. ADOC officials summoned Guice from his post and conducted a search of the vehicle. Investigators found three bags of suspected methamphetamine inside Guice’s car and two additional bags in his pockets. Drug laboratory analysis confirmed the substance to be methamphetamine.
During his plea hearing in May of this year, Guice admitted that he possessed methamphetamine with the intent to distribute the illegal drug and that he conspired with another individual for that purpose. A federal grand jury also indicted 48-year-old Brad Elliot Gordon, who was an inmate at Staton in June 2023, for his alleged role in the conspiracy. Gordon’s trial is scheduled for February 3, 2025. An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The Drug Enforcement Administration and the ADOC Law Enforcement Services Division investigated this case, which Assistant United States Attorney Mark E. Andreu prosecuted.
Former Bronx Public Charter School Teacher Sentenced to 30 Years in Prison for Sexual Abuse of Five Former StudentsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that JESUS CONCEPCION was sentenced to 30 years in prison by U.S. District Judge Loretta A. Preska in connection with his sexual abuse of five minor victims who had been his students. CONCEPCION previously pled guilty to five counts of child enticement, four counts of transportation of a minor with intent to engage in illegal sexual activity, and one count of travel with intent to engage in illegal sexual activity with a minor.
U.S. Attorney Damian Williams said: “Today, Jesus Concepcion was sentenced to decades in prison for his horrific exploitation of children placed into his care as students. The victims of these crimes have waited almost twenty years for Concepcion to be held accountable for the devastating harm and trauma he inflicted on them and their families. Today’s sentencing is a reminder that it is never too late for justice to be served and that the Southern District of New York will work tirelessly to protect children from abuse and exploitation.”
According to the Superseding Indictment and statements made in court and public filings:
CONCEPCION was a music teacher and orchestra instructor at a public charter middle school located in the Bronx, New York (“School-1”) from in or about 2000 up to and including in or about 2007. During that same period, CONCEPCION abused his position as a teacher to induce and attempt to induce five of his students (“Minor Victim-1,” “Minor Victim-2,” “Minor Victim-3,” “Minor Victim-4,” and “Minor Victim-5,” and together the “Minor Victims”) to engage in sexual acts. The Minor Victims were as young as 12 years old at the time of the abuse.
To carry out his sexual abuse of the Minor Victims, CONCEPCION singled out the Minor Victims for personal attention; he gave them money, clothing, jewelry, and other gifts, and he provided certain Minor Victims with alcohol to facilitate the abuse. He persuaded the Minor Victims to believe that they were in romantic relationships with him and provided certain Minor Victims with cellphones so that he could communicate with them to arrange sexual encounters.
CONCEPCION engaged in sexual acts including, oral and vaginal sex, with Minor Victim-1, Minor Victim-2, Minor Victim-3, and Minor Victim-4 in various locations on multiple occasions, including in School-1’s music room, in the back room of School-1’s auditorium, in his car, at motels, and at his residences. On numerous occasions, CONCEPCION brought Minor Victims from School-1 or other locations in the Bronx to motels in New Jersey to sexually abuse them. On at least one occasion, after Minor Victim-1 graduated from middle school, CONCEPCION traveled to Minor Victim-1’s high school in Connecticut to have sexual intercourse with her. CONCEPCION also paid, on multiple occasions, for Minor Victim-2 to travel from her high school in Pennsylvania to visit him in New York, where he had sexual intercourse with her. To continue his abuse, CONCEPCION threatened to physically harm Minor Victim-3 and her family if she told anyone about his sexual abuse of her and her younger sister, Minor Victim-4.
CONCEPCION similarly pursued Minor Victim-5 and sent hundreds of text messages over the course of several months to Minor Victim-5, who was then 13 years old, leading her to believe that they were in a romantic relationship. CONCEPCION arranged to meet Minor Victim-5 during school hours at School-1 and kissed Minor Victim-5 on the mouth. The abuse stopped only after Minor Victim-5’s parents discovered CONCEPCION’s communications and reported him.
* * *
In addition to the prison term, CONCEPCION, 51, of Simpsonville, South Carolina, was sentenced to 10 years of supervised release and ordered to pay a total of $1000 in assessments and restitution in an amount to be determined.
Mr. Williams praised the efforts of the Federal Bureau of Investigation (“FBI”) and the New York City Police Department (“NYPD”) for their outstanding work in this matter, particularly the FBI-NYPD New York Child Exploitation and Human Trafficking Task Force.
This case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorneys Camille L. Fletcher, Alexandra S. Messiter, and Jacqueline Kelly are in charge of the prosecution.
Federal Prosecutors Highlight Efforts to Stop Rising Mail Thefts and Prosecute OffendersRead the Press Release
CHARLOTTE, N.C. – The U.S. Attorney’s Office has intensified federal efforts to address the surge in mail thefts by increasing the prosecution of cases involving stolen mail, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Federal prosecutors and investigators are also urging residents and businesses to take proactive measures to prevent thefts and report stolen mail promptly.
“Mail theft is not a victimless crime. Not only does it disrupt the delivery of important mail, but it can be a conduit to identity theft and financial fraud, with significant consequences for victimized individuals and businesses,” said U.S. Attorney King. “My Office is committed to protecting and securing our postal system, but we also need individuals and businesses to remain vigilant and take steps to secure their mail. Working together, we can stop mail thefts and uphold the integrity of our postal services.”
The U.S. Attorney’s Office has brought charges and secured convictions against defendants for crimes related to mail theft. The cases involve mail stolen from residential and business mailboxes and mail processing centers, used to commit financial fraud, bank fraud, and identity theft. Among the defendants charged are former postal employees, who misused their position and access to commit mail theft and engage in criminal schemes involving stolen mail.
“The safety and security of the U.S. mail and its customers are core to the mission of the U.S. Postal Inspection Service,” said Inspector-in-Charge Tommy D. Coke of the Atlanta Division. “Mail theft can have devasting consequences for victimized individuals and businesses. This effort would not be successful without the cooperation between our federal, state, and local law enforcement counterparts. We will continue to work collectively to pursue criminals who victimize postal customers.”
“We appreciate the outstanding effort by both our law enforcement partners and the Department of Justice,” said Jeffrey Krafels, Special Agent in Charge of the U.S. Postal Inspection Service, Office of the Inspector General (USPS-OIG). “The vast majority of Postal Service employees are honest, hardworking individuals who would not violate the public’s trust in this manner. An employee who decides otherwise, will be aggressively investigated by OIG Special Agents. These cases serve as an excellent example of the successful collaboration between the USPS-OIG, our federal and state law enforcement partners, and the U.S. Attorney’s Office to pursue and prosecute Postal Service employees and their co-conspirators involved in criminal activity.”
Examples of recent charges brought by the U.S. Attorney’s Office include:
U.S. v. Miguel Bridges and U.S. v. Jaleesa Bridges and Ryan Bridges – Miguel Bridges, 34, of Charlotte, worked as a postal employee at a mail distribution center in Charlotte. Today, he pleaded guilty in federal court to conspiracy to commit offense against the United States for stealing cell phones from the U.S. Postal Service (USPS) and selling them for profit. Jaleesa Bridges, 36, of Charlotte, and Ryan Bridges, 32, of Florence, South Carolina, were charged separately in August 2024, with conspiracy to commit wire fraud and possession of stolen mail. Their charges are still pending. According to allegations in the charging documents, Miguel Bridges took advantage of his position as a postal employee to open mail parcels and steal cellular phones, which he and his co-conspirators then sold to ecoATM automated kiosks and other locations, as well as to third parties. During the conspiracy, it is alleged that more than 1,400 stolen cell phones were sold for approximately $400,000.
U.S. v. John Davis – On August 28, 2024, John Calvin Davis, III, 28, of Charlotte, was sentenced to 18 months in prison and three years of supervised release for executing a scheme involving stolen checks. Court documents show that, from August 2022 to January 2023, Davis obtained approximately 50 checks that were stolen from USPS mail collection boxes in Charlotte. The defendant then fraudulently endorsed the stolen checks, used ATMs to deposit the checks into bank accounts he controlled, and quickly withdrew the funds via ATMs or mobile transfers before the victims or the bank discovered the checks were stolen. Through this scheme, Davis fraudulently obtained $304,355.56 in fraudulent proceeds.
U.S. v. Quadarius Thomas – On August 7, 2024, Quadarius Thomas, 30, of Charlotte, pleaded guilty to one count of possession of stolen mail, and two counts of possession of a firearm by a convicted felon. Court records show that, in December 2023, Thomas had in his possession a U.S. Treasury Check that had been mailed to a victim company. The check was in the amount of $2,463,923.52, and it had been stolen from a letter box or post office. Thomas also pleaded guilty to possession of a firearm by a felon. Court records show that Thomas possessed two firearms despite having prior criminal convictions that prohibit him from possessing firearms. Thomas is currently in federal custody and is awaiting sentencing.
U.S. v. Jessica Sowell – On August 5, 2024, Jessica Bailey Sowell, 31, of Charlotte, pleaded guilty to bank fraud, aggravated identity theft, and possession of a firearm by a convicted felon. Court records show that, from March 2023 to February 2024, Sowell executed an identity theft and bank fraud scheme using personal identifying information (PII) of identity theft victims. Sowell obtained the PII through various means, including stealing mail, from the internet, and other sources. Sowell used the stolen PII to create fraudulent identification documents which she used at banks, hotels, and retail stores in order to obtain money and merchandise, and to rent hotel rooms and cars. During that time, Sowell also illegally possessed a firearm. Sowell is currently detained. A sentencing hearing has not been set.
U.S. v. Douglas Gumbs – On August 1, 2024, Douglas Gumbs, 39, of Charlotte, was sentenced to 36 months in prison and three years of supervised release for bank fraud. Court records show that, from 2022 to 2023, Gumbs conspired with others to steal large quantities of U.S. mail from residential and business mailboxes. The stolen mail included business and individual checks, credit cards, tax forms, bank and other financial statements, packages, as well as victims’ PII. Gumbs carried out the fraud by altering the amounts of the stolen checks and changing the names of the payees to his own name, then cashing the stolen checks. In other instances, Gumbs obtained stolen blank checks and wrote the checks to himself. Gumbs also created false identification documents, including drivers’ licenses, that contained his picture with the names and drivers’ license numbers of identity theft victims, which he used in furtherance of the scheme.
U.S. v. Tressa Baucom, et al. – In July 2024, Jennings Peter Keziah, also known as Christian Thomas Carpenter, 37, of Stanley, N.C., was sentenced to 30 months in prison followed by two years of supervised release for conspiracy to possess stolen mail, for stealing thousands of pieces of mail in North Carolina and South Carolina. Keziah’s co-defendant, Tressa Nichole Baucom, 31, of Charlotte, has pleaded guilty to the same offense and is awaiting sentencing. According to court records, from October to December 2021, the defendants executed a mail theft scheme that targeted residential mailboxes in Charlotte and Gastonia, N.C., and York County, S.C. Over the course of the scheme, Baucom and Keziah allegedly stole more than 3,700 pieces of mail, including credit cards, checks, gift cards, driver’s licenses, bank statements and a passport. Court records show that the defendants used the stolen cards for personal expenditures, including to make purchases at Walmart, Academy Sports & Outdoors, Quick Trip, and Best Buy.
U.S. v. Nakedra Shannon, et. al. – Nakedra Shannon, 30, Donnell Gardner, 28, and Desiray Carter, 30, all of Charlotte, were indicted for a scheme involving stolen checks. In July 2024, Gardner was sentenced to 54 months in prison, after he pleaded guilty to conspiracy to commit financial institution fraud and theft of government money, property, or records. According to court records, Shannon, who was employed by the USPS as a mail processing clerk, stole incoming and outgoing checks from the U.S. mail, which Shannon, Gardner, and Carter then sold to other individuals. Over the course of the conspiracy, the defendants stole checks totaling more than $24 million, including more than $12 million in stolen checks which were posted for sale on the Telegram channel OG Glass House, and more than $8 million in stolen U.S. Treasury checks. Shannon and Carter have pleaded guilty to conspiracy to commit financial institution fraud and theft of government money, property, or records and are awaiting sentencing.
U.S. v. Montavius Hancock, et al. – In May 2024, a federal grand jury charged Montavius Hancock, 28, and Marquez Gaston, 28, both of Charlotte, with conspiracy to commit offense against the United States for theft of U.S. mail and unlawful possession of USPS universal keys, also known as “arrow keys,” amongst other charges. According to allegations in the indictment, Gaston used his position as a USPS employee to steal the arrow keys, which he then sold to other individuals, including to Hancock. Hancock and others used the arrow keys to steal U.S. mail, including checks and bank cards, from USPS mail receptacles. During the conspiracy, Hancock obtained checks with a face value of more than $400,000. Hancock pleaded guilty to conspiracy to commit offense against the United States and is awaiting sentencing. The charges against Gaston are pending.
U.S. v. Jakia McMorris – In April 2024, Jakia McMorris, 33, of Charlotte pleaded guilty to conspiracy to commit bank fraud for stealing more than $40,000 in checks, including checks stolen from the U.S. mail. According to court records, McMorris was a USPS employee. On or around September 13, 2021, McMorris reported that, while she was delivering mail, she lost a USPS universal key that could open many U.S. mailboxes. After that day, McMorris stopped reporting for work at the USPS. During the scheme, McMorris’s co-conspirators used the stolen universal USPS key to open multi-unit outdoor mailboxes in Charlotte and steal mail. The stolen mail included business checks, which were deposited into various bank accounts, including in bank accounts in McMorris’s name. The co-conspirators then quickly withdrew the cash from the accounts before the banks detected the fraud. McMorris received a portion of the funds as payment for using her bank accounts to perpetuate the scheme. McMorris is released on bond and is awaiting sentencing.
U.S. v. Kyree Corbett – In February 2024, Kyree Jamayl Corbett, 23, of Charlotte, was sentenced to 78 months in prison, followed by two years of supervised release for conspiracy and robbery of property of the United States. Court records show that, in December 2021, Corbett participated in a robbery at gunpoint of a U.S. postal employee, using the threat of force to steal a USPS universal key. Corbett and his co-conspirators then used the key on multiple occasions to steal large quantities of mail from U.S. Postal collection boxes throughout the Charlotte area. Corbett and his co-conspirators would then open and remove the contents of the stolen mail, which included individual and business checks. David Miller, a co-conspirator in Corbett’s mail theft conspiracy, was sentenced to 14 months in prison in March 2023.
The U.S. Attorney’s Office advises the public to take the following steps to protect their mail and avoid becoming a victim of mail theft:
- Promptly Retrieve Mail: Collect your mail daily and avoid leaving it in the mailbox overnight.
- Secure Mailboxes: Use secure, lockable mailboxes for incoming and outgoing mail.
- Inquire About Overdue Mail: If you have not received valuable or important mail you’re expecting, contact the sender to inquire about it.
- Don’t Send Cash: Avoid mailing cash, gift cards, or other items of value. When doing, so utilize the package tracking and signature confirmation options.
- Hold Mail When Away: Use the USPS Hold Mail service when you are out of town.
- File a Change of Address: When moving, file a change of address with USPS.
- Report Suspicious Activity: Immediately report any suspicious individuals or activities near mailboxes to local law enforcement.
- Monitor Financial Statements: Regularly review bank and credit card statements for any unusual activity.
- Sign up for Informed Delivery and get daily digest emails that preview your mail and packages scheduled arriving soon.
Customers are encouraged to report stolen mail as soon as possible by submitting an online complaint to the Postal Inspection Service at www.uspis.gov/report or calling 877-876-2455.
Additionally, report the theft to your local police department to ensure they are aware of potential criminal activity in your area. Individuals are also encouraged to report allegations of Postal Service employee misconduct, including attempts to corrupt a Postal Service employee, to the USPS OIG at 1-888-877-7644 or www.uspsoig.gov.
Federal Inmate Arrested for Forcible Assault on Correctional Officers and Possession of ContrabandRead the Press Release
Ocala, Florida – United States Attorney Roger B. Handberg announces the arrest of Muller Vedrine (33, Miami) on a two-count indictment charging him with assaulting, resisting, and impeding officers of the United States, and possession of contraband by a federal inmate. If convicted, Vedrine faces up to 14 years in federal prison.
According to court records, Vedrine is a federal inmate at the Coleman Federal Correctional Complex in Sumter County. On March 10, 2024, during a routine search of Vedrine’s cell, correctional officers observed Vedrine with a cellphone in his hand. When the officers ordered Vedrine to hand over the contraband phone, he instead punched a correctional officer in the chest and then began smashing the phone. Once the officers subdued Vedrine, they also discovered buprenorphine, a Schedule III controlled substance, hidden with the legal documents in his prison cell.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case is being prosecuted as part of a United States Department of Justice task force aimed at rooting out contraband and misconduct in the Federal Bureau of Prisons (FBOP). The task force was led by the FBOP and the DOJ Office of the Inspector General, with support from the Federal Bureau of Investigation, the Drug Enforcement Administration, and the United States Attorney’s Office for the Middle District of Florida. It is being prosecuted by Assistant United States Attorney Hannah Nowalk.
Deerfield Beach Man Sentenced to More Than 14 Years in Federal Prison for Armed Bank RobberyRead the Press Release
Orlando, FL – U.S. District Judge Anne Conway today sentenced Johnson Saint-Louis (39, Deerfield Beach) to 14 years and 3 months in federal prison for bank robbery and brandishing a firearm in furtherance of a crime of violence. The court also ordered Saint-Louis to forfeit a Ruger firearm and assorted ammunition, which were used during the commission of the offense. A jury had found Saint-Louis guilty on May 30, 2024.
According to testimony and evidence presented at trial, Saint-Louis was a former ATM technician who traveled around the southeast tampering with ATMs serviced by his former employer. On February 16, 2021, Saint-Louis robbed a bank in Longwood. Saint-Louis visited the location’s drive-thru ATM, manipulated the ATM in a way that caused it to malfunction, and then waited for the ATM technician to arrive. Once the technician arrived and opened the ATM and vault containing the cash, Saint-Louis, dressed in dark clothing and wearing a mask and gloves to conceal his identity, approached from a hole in the parking lot perimeter fence. Saint-Louis confronted the ATM technician with a firearm, forcing him to his knees to wait out the robbery, while Saint-Louis moved the cash from the vault cassettes into a backpack. In total, Saint-Louis stole approximately $135,530 from the ATM.
As part of the FBI’s investigation into the bank robberies, Saint-Louis was surveilled by deputies from Seminole County Sheriff’s Office. On November 4, 2021, deputies observed Saint-Louis traveling to various bank locations in Seminole County. Deputies eventually stopped Saint-Louis, and during that traffic stop, they observed that Saint-Louis had a firearm inside his car with black tape covering its serial numbers, as well as several pieces of paper listing bank branch locations in Jacksonville. The listed bank branches were annotated with whether the ATM at each location was manufactured by Saint-Louis’s former employer or by another company, along with other notes.
This case was investigated by the Federal Bureau of Investigation, the Seminole County Sheriff’s Office, and the Tallahassee Police Department. It was prosecuted by Assistant United States Attorneys Rachel S. Lyons and Chauncey A. Bratt.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Cottage Grove Felon Charged with Conspiracy to Distribute Methamphetamine, Illegal Possession of a FirearmRead the Press Release
MINNEAPOLIS – A Cottage Grove man has been charged in a four-count indictment with conspiracy to distribute methamphetamine, possession with intent to distribute methamphetamine, possession of a firearm as a felon, and possession of a firearm in furtherance of a drug trafficking crime, announced U.S. Attorney Andrew M. Luger.
According to court documents, on July 16, 2024, law enforcement executed a search warrant at the residence of Jonathan Henry Valencour, 44, in Cottage Grove. Law enforcement seized approximately 84.4 kilograms of methamphetamine from a large trash can in the garage of the residence. Law enforcement also seized a firearm with an attached silencer. Because Valencour has prior felony convictions in Hennepin and Washington Counties, he is prohibited under federal law from possessing firearms or ammunition at any time.
The indictment charges Valencour with conspiracy to distribute methamphetamine, possession with intent to distribute methamphetamine, possession of a firearm in furtherance of a drug trafficking crime, and possession of a firearm as a felon. Valencour was arraigned yesterday in U.S. District Court before Magistrate Judge John F. Docherty. He has been ordered to remain in custody pending further proceedings.
This case is the result of an investigation conducted by the Drug Enforcement Administration, the Washington County Drug Task Force, and the Cottage Grove Police Department.
Assistant U.S. Attorney Thomas M. Hollenhorst is prosecuting the case.
An indictment is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Convicted Felon Indicted for Possessing a FirearmRead the Press Release
A federal grand jury returned an indictment today charging a Mississippi man with being a felon in possession of a firearm.
The indictment charges that, on or about June 28, Marquez Dante Scott, 21, of Jackson, knowingly possessed a firearm after he was previously convicted of a crime punishable for a term exceeding one year.
If convicted, Scott faces a maximum penalty of 15 years in prison.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division, and U.S. Attorney Todd W. Gee for the Southern District of Mississippi made the announcement.
The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case, with assistance from the Capitol Police Department.
Trial Attorney Lakeita F. Rox-Love of the Criminal Division’s Violent Crime and Racketeering Section and Assistant U.S. Attorney Matt Allen for the Southern District of Mississippi are prosecuting the case.
This case is brought as part of the Criminal Division’s Violent Crime Initiative to prosecute violent crimes in Jackson and the surrounding areas. The Criminal Division and the U.S. Attorney’s Office for the Southern District of Mississippi have partnered, along with local, state, and federal law enforcement agencies, to address violent crimes committed by gang members and associates through the enforcement of federal laws and use of federal resources to prosecute the violent offenders and prevent further violence.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Convicted Felon Indicted for Possessing a FirearmRead the Press Release
WASHINGTON - A federal grand jury returned an indictment today charging a Mississippi man with being a felon in possession of a firearm.
The indictment charges that, on or about June 28, Marquez Dante Scott, 21, of Jackson, knowingly possessed a firearm after he was previously convicted of a crime punishable for a term exceeding one year.
If convicted, Scott faces a maximum penalty of 15 years in prison.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division, and U.S. Attorney Todd W. Gee for the Southern District of Mississippi made the announcement.
The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case, with assistance from the Capitol Police Department.
Trial Attorney Lakeita F. Rox-Love of the Criminal Division’s Violent Crime and Racketeering Section and Assistant U.S. Attorney Matt Allen for the Southern District of Mississippi are prosecuting the case.
This case is brought as part of the Criminal Division’s Violent Crime Initiative to prosecute violent crimes in Jackson and the surrounding areas. The Criminal Division and the U.S. Attorney’s Office for the Southern District of Mississippi have partnered, along with local, state, and federal law enforcement agencies, to address violent crimes committed by gang members and associates through the enforcement of federal laws and use of federal resources to prosecute the violent offenders and prevent further violence.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Columbia Man Sentenced to Federal Prison for Unlawful Possession of a FirearmRead the Press Release
COLUMBIA, S.C. — Leroy Antonio Belin, 31, of Columbia, was sentenced to more than eight years in federal prison after pleading guilty to being a felon in possession of a firearm and possession with intent to distribute a controlled substance.
Evidence presented to the court showed that on July 6, 2023, following a traffic stop, officers with the Columbia Police Department discovered Belin in possession of a loaded firearm, ammunition, marijuana, psilocybin mushrooms, ecstasy, and oxycodone. The firearm in Belin's possession was reported stolen from Charlotte, North Carolina. As a result of prior felony convictions, Belin was prohibited from possessing firearms.
Belin has previous convictions for attempted murder, discharging firearms into a dwelling, common law robbery, strong arm robbery, and two counts possession of a firearm or ammunition by a person convicted of a violent felony.
United States District Judge Mary Geiger-Lewis sentenced Belin to 100 months' imprisonment, to be followed by a three-year term of court-ordered supervision. There is no parole in the federal system.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Columbia Police Department. Assistant U.S. Attorney Ariyana Gore prosecuted the case.
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Columbia Man Sentenced for Illegal FirearmsRead the Press Release
JEFFERSON CITY, Mo. – A Columbia, Mo., man was sentenced in federal court today for illegally possessing firearms.
Shaune Aaron Price, 36, was sentenced by U.S. District Judge Brian C. Wimes to a total sentence of 10 years and 10 months in federal prison without parole.
On Nov. 7, 2023, Price pleaded guilty to two counts of being a felon in possession of a firearm.
A detective with the Jefferson City, Mo., Police Department recognized Price on March 23, 2022, and confirmed he had a warrant for his arrest. Officers stopped the bus Price was riding and arrested him. Price had a tan duffle bag that contained a loaded Glock 9mm semi-automatic handgun.
The ATF National Integrated Ballistic Information Network (“NIBIN”) conducted an analysis that linked the handgun to three separate events, including a shooting outside Gold Bar in downtown Columbia on Nov. 6, 2021, and a domestic assault on Jan. 1, 2022.
Investigators also found a video on Price’s cell phone that depicts him holding a Glock .40-caliber handgun on May 31, 2021. According to the government evidence, Price’s cell phone and Facebook records indicate he possessed at least 11 firearms. Investigators also discovered several messages in which Price bragged about being involved in “shoot-outs,” including one message about being involved in three “shoot-outs” in the past nine days.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Price has prior felony convictions for attempting to carry a concealed weapon and carrying a concealed weapon.
This case was prosecuted by Supervisory Assistant U.S. Attorney Lauren E. Kummerer. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Jefferson City, Mo., Police Department.
Project Safe Neighborhoods
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Colorado Man Sentenced for Cyberstalking Three Individuals in Hawaii and Obstructing JusticeRead the Press Release
A Colorado man was sentenced yesterday to eight years and one month in prison followed by three years of supervised release for cyberstalking and obstruction of justice offenses committed in Hawaii.
According to court documents, from May 2022 to August 2022, John B. Hart, 54, of Louisville, while living in Hawaii, engaged in a cyberstalking campaign to harass and intimidate his former girlfriend, Jane Doe 1; her former partner, John Doe 1; and her then-partner, John Doe 2. Hart frequently posed as John Doe 1 while targeting his other two victims, and also pretended to target himself in an attempt to deflect attention away from himself and falsely implicate John Doe 1. Hart hid his true identity by using multiple “burner apps” to generate dozens of fake phone numbers that he used to message his victims. Hart also falsely reported the conduct to local and federal law enforcement authorities and others, claiming that John Doe 1 was responsible and posed a genuine and serious threat to Hart and others. Two days after being questioned by federal agents, Hart deleted one of his personal e-mail accounts in an attempt to obstruct the ongoing investigation.
Hart pleaded guilty in April to three counts of cyberstalking and one count of obstruction of justice. In his plea agreement, Hart admitted to posing as John Doe 1 and committing acts directed at each of his three victims, including, among other things: (1) sending communications to Jane Doe 1 encouraging her to kill herself; (2) sending communications to Jane Doe 1, her family members, and her associates claiming that John Doe 2 was a human trafficker who may have kidnapped Jane Doe 1; (3) sending communications to Jane Doe 1’s family members, John Doe 2, and their associates that contained express or implied threats to kill, kidnap, rape, and otherwise injure Jane Doe 1; (4) creating online dating profiles in Jane Doe 1’s name, and sending messages causing multiple men to appear at Jane Doe 1’s workplace; (5) sending communications to John Doe 2 claiming to have sexual photos and videos of Jane Doe 1 and threatening to post them online and distribute them to her friends and family; and (6) spray-painting Jane Doe 1’s vehicle and placing metal spikes on the ground near her tires, while her vehicle was parked outside of her place of employment.
Hart has been detained since his August 2023 arrest in Colorado.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division, U.S. Attorney Clare E. Connors for the District of Hawaii, Special Agent in Charge Steven Merrill of the FBI Honolulu Field Office, and Acting Assistant Director James C. Barnacle Jr. of the FBI’s Criminal Investigative Division made the announcement.
The FBI investigated the case.
Senior Trial Attorney Mona Sedky of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorneys Sara D. Ayabe and Aislinn Affinito for the District of Hawaii prosecuted the case.
Child Sex Predator Sentenced to 30 Years in PrisonRead the Press Release
SACRAMENTO, Calif. — Sean E. Karjala, 53, formerly of Red Bluff, was sentenced today by U.S. District Judge John A. Mendez to 30 years in prison and a life term of supervised release for production of child sexual abuse material, U.S. Attorney Phillip A. Talbert announced. Karjala’s federal sentence will be served concurrently with his state sentence of 36 years to life for the attempted murder of a California Highway Patrol Officer.
According to court documents, in 2013, Karjala engaged in a months-long inappropriate sexual relationship with a minor female victim after she answered an online Craigslist advertisement. Karjala repeatedly raped the minor victim and subjected her to bondage and other physical abuse. Karjala manipulated the victim into sexual activity with another female and took photos of the activity with his cellphone camera.
After Karjala communicated with an undercover police officer whom he believed was another minor female, investigators searched Karjala’s residence. During the search, investigators found multiple sexual bondage materials including a matching pink and white ankle and wrist cuff set and a collar that Karjala had described in conversations with the undercover officer. They also found clothing commonly associated with younger females and a photo of Karjala and the victim. In Karjala’s vehicle, investigators found a duffle bag containing a bondage manual, condoms, and a local high school counseling slip with the victim’s name. Investigators also located numerous images on Karjala’s cellphone of the victim engaged in sexual acts with another female.
This case was the product of an investigation by the Tehama County District Attorney's Office and the Federal Bureau of Investigation. Assistant U.S. Attorneys Heiko P. Coppola and Roger Yang prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet-safety education.
Chattanooga Man Sentenced to 60 Months in Prison for Defrauding Elderly Widow with Dementia of $1.2 MillionRead the Press Release
NASHVILLE – Karl Hampton, 65, of Chattanooga, Tennessee, was sentenced to 60 months in prison, followed by 3 years of supervised release, and ordered to pay over $1.2 million in restitution for executing a scheme to defraud an elderly widow who had dementia, announced Henry C. Leventis, United States Attorney for the Middle District of Tennessee.
Hampton and his wife Deborah, both formerly of Franklin, Tennessee, were indicted in June 2021 on multiple counts of conspiracy and money laundering and Karl Hampton was also charged with eight counts of wire fraud. After a week-long jury trial in April 2023, Karl Hampton was convicted on all counts.
At trial, the evidence showed that Karl Hampton met the 86-year-old widow while he was working as an exterminator for a pest control company based in Nashville. Between January 2018 and February 2020, Karl Hampton tricked the woman into believing that he would care for her personally and financially. Hampton held himself out to the woman and others as her “personal representative,” her “son” or “godson,” and pretended that he was acting on her behalf. In April 2019, Hampton convinced her to sign over her Power of Attorney and to name him in her Revocable Living Trust and in her will. He then methodically drained the woman’s bank accounts, took out a $500,000 line of credit in her name, and amassed huge charges on her credit cards for his own personal expenses.
Some of the funds Hampton stole came from two investment accounts that belonged to the estate of the woman’s deceased sister. Those funds were supposed to be split between the woman and another individual. Instead, Hampton transferred the funds to himself.
In total, Hampton took more than $1.2 million. from the woman’s accounts in the form of checks, cashier’s checks, and bank transfers, cash withdrawals, and using the woman’s credit card for his own benefit. Hampton frequently purchased luxury items, including a car and a luxury SUV, and a 4.3-karat diamond ring that cost more than $21,000. Hampton often spent over $1,000 per day in cash buying lottery tickets.
Deborah Hampton pleaded guilty to one count of money laundering on February 13, 2023. She was sentenced to time served, 3 years of supervised release, and ordered to pay restitution in the amount of $21,000.
This case was investigated by the Federal Bureau of Investigation, Memphis Field Office, Nashville Resident Agency. Assistant U.S. Attorney Kathryn Booth prosecuted the case.
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